Don't be afraid.. RAW is basically just a HUGE step forward from JPG in terms of total control over your photos.. if you are a user that keeps the camera set to Auto.. then I'd say don't worry about it and just use JPG. But, if you understand how to (and when to) use A or S mode, ISO and F-stop... you need to try RAW over JPG.

Lightroom is good - so long as you have a decent PC with at least 2GB of ram... anything else will leave you frustrated with the amount of time it takes to process images. The new 2.0 version (beta right now) is very nice and take LR to a new level with precision controls... The photo management side of things is very weak still - basic metadata controls.

I use the gallery along with the free Flash based templates to create client galleries that rock - plus they really showcase the photos which helps me sell them to my customers..

So.. for RAW development and Gallery creation.. I highly recommend LR. As a tool to manage your software, I still recommend other DAM packages which you can read all about at my new Digital Management Review website: The DAMRoundup - www.damroundup.com. Enjoy!