I need to scan some pictures, fix them in PSP, save them put them into fotofusion

and then put them into a book on Shutterfly.
I'm worried about the quality of the photo because it will be saved so many times. I'm thinking I would
save the scanned image as a TIF, fix in PSP and save as a JPG and then put in a collage or scrapbook page
in fotofusion in order to make a book in shutterfly. These images would be save 3X, scanning, saving from PSP,
and then saving from Fotofusion.
How would you handle this in order to keep picture quality and create a manageable size image to create
layouts?
Thanks,
Laurie