Nikon raw strategy and tactics questions

Hi - new elements/nikion user here. Coupla questions for the experts:
loaded the raw 4.1 plugin with elements 5 and everything works hunky-dorey.
In the raw applet if I save the file it only gives me a choice of .dng. If I hit the 'open in editor' button it puts me into the full editor but then when I save it saves the file as a .xmp file. confusion! What do I want to save it as? I guess I can't save it as a .nef anymore? What will a printer want?
I see I can do quite a bit of manipulation to the photo in the raw editor but is this just redundant with what I could do with the elements tools? Should I edit it here (speaking of saturation, vibrance, etc) and again later in elements? Could I just save it without any manipulation as a .dng and then do the editing in elements and get the same results?
Thanks for your expertise!
Chris

Chris....
If you are shooting RAW format then there is a great benefit for processing as much as possible in ACR. Firstly, you'll be working with 16bit data ( although your camera only delivers 12bits) and secondly the processing changes are non-destructive - in other words you still have you original RAW file, unchanged.
The fact that you work in 16bit mode means processing changes are smoother and also many of the ACR controls don't cause clipping. If you perform a levels adjustment for example in the Editor on an 8 bit image, you start off with 256 levels but then throw away some as you make the adjustment. While you can work in the Editor in 16 bit mode, Elements restricts what you can do compared to 8 bit mode.
You have a choice once you have processed the RAW file depending on what you intend to do. You can either leave it as a RAW file or if you want to manipulate the image in the Editor the best option is to choose a lossless file format such as TIF or PSD. These will also support layers.
Colin

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