The RAW File Format is to digital photography as the negative is to film photography. It contains untouched, "RAW" pixel information straight from the camera's sensor. If you get JPG files from your camera, then the camera is doing the conversion based on preset parameters by the manufacturer. If you shoot RAW, then the processing takes place outside the camera in the "RAW" processing software of your choice. If your camera has the ability to shoot RAW (CR2, NEF, DNG and others), you should have received RAW processing sofware with your camera. Other popular software choices are Adobe Photoshop, Adobe Photoshop Elements, Adobe Photoshop Lightroom, and Aperture.
Deciding on JPG or RAW processing can be quite a challenge as a RAW workflow is more involved than a JPG workflow. However, most people agree that the benefits of RAW processing far outweigh any negatives. The resources this month should help you decide between JPG and RAW as your format of choice.
This 9-minute video takes a look at basic post-processing after digital capture. You will see the difference between processing a JPG file that has already been processed once in-camara, and the RAW file that is being processed for the first time.
A discussion of Camera Raw
Bert Monroy interviews world renowned photographer Jeff Schewe in this special episode of PixelPerfect to discuss camera raw.
Digital
Imaging Photography Guild