Scanning options, 8bit grayscale vs 24bit color, psd vs jpg, experience and opinions sought

I have an Epson Scanner, PSE5 and want to scan about 100 8x10 sheets (multiple photos per sheet) from a 50 yr old photo album. photos are yellowed, and in future I want to be able to crop/select some of the small photos on the sheets. Few questions, I'd like to get advice from those more experienced:
Resolution, file format
I've scanned at 2400 dpi and 1200 dpi - I can notice slight difference when working with the small pictures so my preference is to go 2400 but the storage size for the 8x10 sheet is 1.5gb when saved as tiff or psd. When I save as jpg max quality (500k) I cannot tell difference even when looking at 100% or enlarging - no pixelation. So, I'm thinking I'll have better quality scanning at 2400 and saving as jpg (500k) vs. scanning at 1200 and saving as psd or tiff (385mb). Do you agree?
Scanning 24bit color vs. grayscale
For some photo projects I like having the colored pictures which I get if I scan 24bit color. Others I want the grayscale which removes the color. I could scan twice but that has obvious disadvantages (time and storage). I know I can use PSE to add yellow to grayscale scan or to remove yellow from color scan. Does anyone have an opinion, if I want to scan once, am I better off 24bit color or grayscale?
Is answer/advice any difference if I'm scanning 8 bit grayscale vs 24bit color - scanning in 16 bit grayscale has lots of limiations editing and saving (jpg isn't available). Am I losing alot of by scanning in 8bit grayscale vs. 24bit color. I haven't tested print quality but on screen I don't notice the difference even at 100%. Opinions of whether I'm better 8 bit grayscale vs 24 bit color for these yellowed black and white pictures?
Anything else I should be thinking about for this type of project?
thanks!
picsob

If these are full size images, you really don't need to go above 300 ppi. I would save as TIFF or PSD unless you have a compelling reason for not doing so. JPEG applies compression every time you save and close the image, so you'll want to convert to another format for working anyway, and storage is cheap now. (There's a difference between ppi and dpi, although scanner makers ignore it. You want the highest possible dpi when printing, but the human eye cannot distinguish much difference when you go above 300 ppi. If you want to make extra sure, go to 600, but that's not going to provide more useful information to a printer, really. Mostly just a much larger file size.)
I would also scan in color. When you scan in greyscale you are saving much less information, and you might want that someday.

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