I made the jump into RAW about a month ago. Talk about possibilities. It opens up a whole different aspect of photography
If I understand it correctly, here are the differences
JPEG: "Processed" inside the camera. Pretty much, the camera decides which information to 'throw', it will sharpen the image, add contrast, saturation etc. as it sees fit. Probably the best option if you want lots of photos from your card because they take up much less space, but doesn't give you full control of your images.
RAW: Pretty much as it states, the "raw" image. The camera does nothing to it. Programs such as Photoshop offer programs to work with RAW, and it allows much more to be changed.
It is sometimes surprising how different the same RAW and JPEG image turn out. They will be entirely different, because of the processing done in the camera. Currently i am shooting RAW + Jpeg, which is a pain to go through on the computer, but in the long run it is worth it, I believe.
Really, it is a personal preference. If you have the program to edit RAW, I would continue shooting in it.
Hopefully I got all my facts right. :S