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Hi Kathi
best size to scan is at least as big as the biggest possible use. So if you scrap 8x10 and you might use teh pic at full size scan at 8 x 10 and always at 300dpi
With my scanner ( an old Scanjet4100C HP) you can scan and then readjust the scan size to make a wallet size as 8x10 or whatever using image options. You need to do this when you scan though to get the best result (within your scanner)
As for file type most people prefer TIFF i believe as its compression free ..its what I use as well
and whne you save your layout save at least one copy in teh native format as the master or original copy and then you can also save copies at whatever format you want eg .jpg for sharing on line or tif or png to send for printing
Hope that helps : )
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