How to save JPEG files in PSE5.0 ?

OK. newby Q again. how the heck does one know what to choose when it comes to saving an image as a JPEG? the following three boxes pop up:
IMAGE OPTIONS:
QUALITY>
FORMAT OPTIONS:
BASELINE>
PROGRESSIVE>
SIZE:
up to 2 MBps?

Generally, if you're going to archive your photos as Jpegs, you would want to save them in as high a quality as possible. This would be with the slider all the way to the right or number "12".
Usually "Baseline standard" would be the way to go. This writes the photo in one pass to the screen.
"Progressive" writes the photo in 3 passes across the screen, and is usually used for uploading and viewing large files within a web page.
The "size" dialog box you're referring to, gives you the approximate time (in seconds) required to upload the photo with 56.6bps internet. (dial up) At least the time is referenced to dial up internet in PSE5. So the speed dialog box gives you this information, [1st]; size of photo (in KB) [2nd]; time to upload, (in seconds), [3rd], reference internet speed.
If you plan on re-editing your photos at a later date, you should consider saving in a lossless format. Both PSD and TIFF file formats support saving in layers, and don't "recompress" the file each time it's worked on. "PSD" is Photoshop's native format, so it could be argued that this would be the better of the two. Since a scanner in "lossless" mode would save in TIFF, Photoshop would need to convert those files to PSD. A jpeg file would be better suited to a photo in which the editing process has been finalized, and is heading to the printer, or perhaps Aunt Martha in an Email.
A final thought is that the quality you use to "jpeg" a file, and the file size itself, is largely purpose dependent. For example a photo that you intend to make public on "Flickr" should be down sized and and jpegged at medium quality. This in the event that the photo is downloaded, your work will not be at full resolution and quality, therefore limiting its usefulness to viewing only. In any event, a photo uploaded to the web absolutely should be a COPY, do not tamper with an original in the manner in which I've just described.

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