Are jpg's okay for an HDV project?

I'm working on a 60-minute HDV project in PP3.  In addition to ~50 minutes of HDV footage, I have ~150 still images.
To prepare the images before import to PP3, I do the following:
* open the RAW image from Adobe Bridge...perform edits in Adobe Camera Raw...save as PSD file
* open the PSD file in PShop...resize the image to ~1440x1080 pixels...sometimes larger if I expect to zoom in
* save it as a JPG with a quality setting between 9 and 12 so that the resulting file size is between close to 1MB...never more than 2MB.
I specifically avoid importing image files as PSD files, since they are usually 4 MB and up in size.
Comments, please.
- Mike -

Hunt,
Thanks for your continued help and for taking the time to be so thorough in your postings.
I read your Article with great interest.  Based on your attention to image quality and the importance of preserving the original files, I can tell that we're cut from the same cloth.  I also come to the video world from still photography and am sensitive to those issues.
Re: your most recent post...I agree completely about testing the quality difference between PSD and JPG files.  There have been times when I have animated layers in a PSD and have needed that capability...but that was in an SD project, not an HDV project.  It was a family history movie which ran over an hour, including the extra features.  It was a combination of jpg stills (~200) and SD video.  I had no performance issues with my PP3 configuration.
But my HDV project seems fragile by comparison.  My first 25-minute HDV project took ~6 minutes to load and caused frequent (Not Responding) semi-crashes.  I also learned the hard way that using MP3 audio files caused render failures and crashes (not experienced in my SD project).  Replacing all audio soundtrack files with WAV files has helped...but I am not too trusting of the systems' capabilities.  I have initiated a fresh project to continue work on the same production.  Since this is for personal consumption (not client work), I can live with having my Europe Trip production parsed, although I hope to combine them into one HDV project at the end with a run time of ~ 1 hour.
I render the project(s) to MPEG2 files using the the Adobe Media Encoder and use a Western Digital WD TV HD Media Player to serve an HDMI signal to my 46" TV.  I am very pleased (stunned, actually) with the fidelity of the images...what an improvement over seeing one's work rendered down to SD.  I highly recommend it...the WD player is only $100 on Amazon...much cheaper than going Apple TV (max 720p) or with Blue Ray burning and playback.  I'm happy to provide my AME settings if you're interested.
To the topic of proper scaling - maintaining circles than want to morph into ovals...
This is only a recent problem for me.  In an effort to make my project as lean as possible, I took some advice offered on the Creative Cow PP forum to scale images to 1440x1080.  That prompted me to use PS3 to do that scaling (using Rectangular Marquee+Crop, or simply the Crop Tool) with settings entered into the Tools' parameters.  As I began to import these into my HDV project, I noticed that some images were being stretched on the horizontal axis.
That prompted me to experiment by creating a perfect circle of black on a white background in PS, trying difference Scaling and Save As options, and evaluating the results after import into PP.  Frankly, that has been a mind twister.  The same PSD file, when Saved as a JPG, exhibits the stretched behavior...go figure that one.  That has led me to the wonderful world of PAR settings...again, experiments on that circle document have had unexpected results.  At this point, I have some interest in figuring it all out, but am pressed with a Thanksgiving deadline on my Europe Trip production.
In brief, my original workflow is as follows:
* open the image (use raw converter for global adjustments and save as PSD)
* if images from the pt&shoot are used, skip the raw work but open in PS3, as below
* use PS3 to adjust for composition, lighting, etc. and save as a PSD
* make a copy to be used for the video project only
* open those copies...assess how much zooming I'm likely to want...use Image Size to downsize/resample the longest dimension accordingly
* use Save As to compress to a JPG file of ~ 1 Mb...max of 2 Mb.  With possibly 200+ images in an already fragile project, I feel it's essential...and the JPG's display very well all the way through to the WD TV and the TV
In the spirit of getting this project finished, I am going to abandon the "proper scaling" efforts with 1440 parameters and go back to my original plan.
I'm tempted to write up the workflow in a bit more detail and call it "The Survival Guide for Handling Still Images in Premiere".  Hunt, your Article was the first thorough discussion I could find on any forum...I'm wondering why I couldn't find it earlier...my loss.  It's a shame that the Adobe User Manual and other books like the PP3 Bible don't spend much time at all on advising folks on how to handle still images.  In books that are hundreds of pages long, you'd think a page or two could be devoted to it.
Thanks again for your help.
- Mike -
(I'll append my h/w and s/w config in a second post)

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