crestgel:
You see most of these cameras have chips that do post processing of images for contrast, highlight, shadow and color. They also have sophisticated algorithms to remove blooming, black noise and other thing. What most ppl do not know is that these great features are only applied to jpegs and not the RAW files. RAW files are the unprocessed information from the camera.
This is kinda true. ALL camera's have chips to post process data. A digital sensor does NOT see color, photosites count the amount of light, so to speak. While RAW files DO contain native data that is less processed, that fact is RAW files ALSO contain ALL the original settings that the camera used in capturing data, and THAT is applied to the RAW data when it's displayed by the camera, or the software. This is why MANY applications do NOT process RAW data well, and EACH model (not just brand) must have a RAW converted built into the software for it to work.
A well shot RAW file will NOT need ANY processing to print other than to convert the file into a format that the printer will recognize, and generally not even that. I can save NEF (NIKON RAW) files in Photoshop, and then print then using the NEF format. That said some RAW software conversions are better than others vs. the in camera counterpart. Unfortunately OLY's RAW software as supplied with the 5060 is about useless, however I've read the Adobe's is very good, AND that the E1 software includes RAW tools that are very good, and may even support the 5060.
So the HUGE advantage of RAW is that ANY settings that the camera does apply which include WhiteBalance (huge), sharpening, saturation, tone, ect., can be applied and CHANGED just like they would have been shot in camera. There are limitations however, and one can NOT change the aperture, or modify exposure beyond the detail that is captured in an image.
crestgel:
That is why your RAW files will not look all that good until you have worked them up.
A note on exposure
When shooting with a digital camera, one should always "Shoot to the right" of the Histogram. If you have a histogram on your camera you should always overexpose your images so that the white areas are as far to the right of the histogram as possible without blowing the whites.
RAW files can look FINE without "working them up". And as to the comment on overexposure, well see my next response.
The bottom line is that working with RAW has only ONE disadvantage, speed and size. With EVERY camera there is some limit to how many RAW image can be done in a specified time, and they are big. With my D1x, I can shoot about 20 RAW images at 3 frames per second, and then I must wait until the buffer clears enough to shoot another. That is Very good for most every situation I would ever shoot.
Ron