Justin,
if you will shoot JPEGs the best thing is to set the camera to a lowest contrast setting, no sharpening and Adobe RGB as the color space. This will get you the best JPEG for postprocessing. Then you will be able to add better sharpening and the low contrast will give you more dynamic range to work with. It's very easy to add contrast, but very hard to remove it.
Regards,
Luis
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The jpeg/RAW debate has probably been rehearsed many times here as well as other places. I use both, if I'm confident of the light and there will be little requirement for post capture processing then jpegs can have their uses.
As I understand things camera manufacturers have developed in-camera sharpening to compensate for the IR filter placed over the sensor. Idle curiosity makes me wonder as to whether the characteristics of the IR filter have a predictable effect on sharpness and so therefore may be more easily corrected as opposed to the PS sharpening which has to deal with all sources of blur?
I totally agree that a blurred or out of focus shot is just that and can only rarely be rescued by PS.
Sharpening does often add that little bit of impact to a shot though, whether it needs it or not, and I have often applied it rather than contrast.
Justin.