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If you shoot jpeg, I would reccomend to always shoot with highest quality possible unless you are limited with space or anything along the lines of that. You can always compress the image later.
While tsaraleksi answered your question, I have one for you. Why are you shooting in JPEG? Always, I mean ALWAYS shoot RAW. Now if you are using a camera without this ability, ignor my advice.
-Nick
Can you explain what "compress the image" is.
Also I don't recomend people to start working in RAW - much better that they work in JPEG (or in JPEG + RAW) in the early days till they get their feet with editing since all RAW shots need to be edited. People need to be confident with levels, contrast, brightness, basic understanding of white balance, sharpening, noise removal and a smattering of curves helps as well. Starting off in RAW is jumping in the deep end
Jpeg can be compressed and lowered in file sizes many ways. The physical size of the image can be reduced, the dpi can be reduced, the quality can be reduced (as stated above), and obviously the format can change the size of the file. If you do a lot of web graphics and design, or uploading, reducing the file sizes of images is very important. When referring to RAW, I'm guessing that you guys mean converting RAW to Jpeg.
Nikon does offer a Compressed NEF file format on the D300 (and a few other models I believe).No compression does not usually refer to raw shooting....