Jai,
There's input resolution and output resolution. Let's begin with output resolution. What resolution do you want to print at and what is the largest size print you intend to make? Let us say the largest print dimension will be 14 inches and you want to print at 300 PPI sent to the printer. Therefore you need total pixels of 14 inches*300 pixels per inch, or 4200 total pixels. Let us assume the media you are scanning has a large dimension of 1.4 inches (as in a 35mm frame, no cropping). To get 4200 pixels from a 1.4 inch input media, your input resolution needs to be 4200/1.4 or 3000 pixels per inch. When you enter these resolution values into your scanning application, make sure there is no confusion about whether it is input or output resolution you are supposed to enter. Basic idea: don't waste more time and storage space than needed relative to the largest "call" you will ever likely make on that scan. I've heard/read all the differing advice and tried the options every which way, looked at the prints normally and pixel-peeping and for all practical purposes this is the most useful recipe to follow. People obsess about whether to scan at "optical resolution" or other, not remembering that effective resolution in terms of what really comes out on paper is limited by the characteristics of the film, quality of the lens on the camera used to make the photograph and scanner's actual resolution, which is usually below the stated optical resolution - sometimes far below.