Opening & Saving JPEGS in Camera RAW

I just started using Photoshop ( version CS3) and am concerned that I'm doing things incorrectly already.
I'm not doing any huge retouching work, but am using camera RAW to open and clean up some JPEG files. I'm just doing a bit of re-white balancing, etc.
I've noticed that when I save the files ( again as Jpegs) they seem to be reduced from around 5mb files to 1.5mb files. When I open the reduced sized files in Photoshop and/or Mac Preview they are the same resolution and dimensions as the larger files, but it seems that somehow the file is being compressed.
Do I have a box checked somewhere that shouldn't be checked? And if so, does it matter ( am I losing resolution in a way that I can't see or haven't discovered?
Or is this compression just another side benefit of CS3 (along with being able to make 'RAW' modifications to Jpegs)?
Thanks, Gllenn

In the Save dialogue in camera raw, when you choose JPEG and choose maximum quality it sets the level to 10, but you can change that number to 12 if you want to. I just tried it with my setup. With the quality level set at 10 the file size was 2.51 MB, with it set at 12 the file size was 5.76 MB. The difference is in the amount of compression that is being applied to the pixels when the image is saved. If you want maximum quality from your JPEG images I would suggest changing that setting to 12, although it will probably be very difficult for you to see any difference.

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