I use Photoshop as the last step in generating ALL of my web graphics. I then use Fireworks and Dreamweaver to build the site. One very important thing that I've learned with both Photoshop and Illustator is that they generate much better graphics if you use the "Save for web" feature. For some reason using just the "Save" or "Save as" does not create as nice of a gif or jpeg for web usage. Plus with the "Save for web" feature you get to experiment with what quality and file size with a real-time preview.
Just my 2 cents.
Gary D.
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