I found this article and thought I'd pass it on. It doesn't just tell you what formats are best and go into lengthy technical descriptions for professional photographers, but offers a simple explanation of what several different file formats are that the average digital camera owner might come across, and explains why you might or might not want to save your pics in that manner. Enjoy!
What is the Best File Format to Save Your Photos In? PSD * TIFF * JPEG * GIF * PNG