Well, I always do it the first way, so I just tried it the second way.
When I try to do a File > Save for Web & Devices in CS4, I get this error message. I tried it with an original layered file and with a flattened 3600x3600 file. I got the error both times.
Seeing as how I don't like "out of memory" errors, I cancelled. If you don't get this error, I say try one each way and then check the file size and compare the quality of each. Not much help, am I? LOL
ETA: I checked the CS4 suggestions for saving for web, and their sample image is going from 158K to 29.6K. That 158K is a far cry from a flattened 12x12" page. My 12x12 was 37.1M.
Honestly, I only do the "Save for Web & Devices" option when I'm trying to keep the file size under a target number for galleries that require that. Since DD doesn't have that restriction, I just do the steps outlined in the
Getting Started link.
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Cassie
My Gear: Nikon D300s w/18-200mm VR & 50mm 1.4
Software: Adobe Photoshop CS4, PSE 6, Lightroom 2