And messing around with jpg would have been a little more dangerous if I'm reading things correctly... Anyway... I believe that already That's why RAW is probably for me... Over jpg or tiff or...
Glad to hear it was a positive experience. Overexposure is harder, an impossible problem, data is lost from the clipping, and it is not recoverable. 1/2 stop over is not so terrible in Raw, and Raw can help one stop over, but it is best not to be over (because clipping simply damages the original). In CS5 ACR, the Recovery slider helps overexposure cases, helps simulate clipped pixels. Your camera histogram (the RGB triple histogram) will tell you if you are clipping. We heroically try to prevent clipping. But in the case of underexposure, unless using high ISO, we can always push exposure a little higher.
I'm sure the lighting was tough. You might try next time to include a white card in a first test shot in that lighting, for reference. Or there probably is some white clothing, shirts, etc, that can be a rough starting point (sometimes pretty good, far better than nothing).
When such edit is needed, there is absolutely zero advantage of using JPG for that... You can, and it can help, but there is much downside.
So, if Raw is available, this next really makes no practical sense....
But.... some do shoot JPG, and regarding lossless, there are a couple of ways to attain lossless JPG edits.
One, if you religiously always archive your original JPG (intact, no edit whatsoever, no exceptions), and always only work on copies of it, then it remains lossless, in that you can always start over from the original JPG. But once you ever overwrite the original JPG file, the original is gone.
Two, Adobe Camera Raw will also edit JPG files, losslessly (just open in Raw, same way). In the same way as Raw, the original JPG is never modified (by ACR). The list of the changes are saved somewhere in the Exif area (it can be in the original camera file without adverse effect), and ACR will apply that edit list of changes to any access. You don't have to start over each time, you start from your previous list of changes. Still JPG, but now also with advantage of using the better Raw tools.
However, other programs reading that file dont know about that, and all they will do is show you the unchanged original JPG (as if nothing has happened). So ACR is the only program that can access them properly now, and ACR will need to output another JPG (containing your edit changes), for all other programs to use (same as Raw requires outputting the JPG for the other programs.) Any subsequent edits simply discard any previous JPG modified versions, and then modify the saved list in the original file - which does not change the original pixels... Only the Exif is rewritten, the JPG data is NOT recompressed and rewritten (no new JPG artifacts). Then output a new JPG. So now, there are only two sets of JPG artifacts, the original set the camera did, and the final one set. In this ACR way, JPG can be better than JPG.

No doubt Raw is better though, the 12 bit range is much greater, and only the one final set of JPG artifacts.
I use ACR to edit my wifes compact JPG, the usual exposure and color issues, but always needing the Red Eye tool, and cropping 5:4 to 3:2 to print 6x4 prints. She thinks her little compact takes really great pictures.
