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The JPEG format DOES NOT support 16-bit mode.
>To get around this I am 'saving' the images to a new location, this allows j-peg conversion
Nope. If you examine those saved JPEGs of yours, you will see that they are in 8-bit color mode. Maybe you used "Save For Web"? That will automatically convert your images to 8 bit. Otherwise, that's why you don't even get the JPEG option while you are on 16-bit color depth.
Aaah.. I see, thanks. But why do I see a marked reduction then in the j-peg artifacts of a blue sky with 16 - bit selected in the workflow and 600 ppi over 8 bit and 240, is it the ppi rate that's making the difference when saved from NEF to jpeg?
Perhaps I'm not the right person to ask that question, as I detest JPEGs and only use them as a way of posting an image to illustrate a point in these forums; but JPEG artifacts are a result of the JPEG compression. The greater the compression, the more artifacts you'll see.
PPI resolution is irrelevant until you go to print. Pixel Dimensions (so many pixels wide by so many pixels high) do make a difference, of course.
Thanks Ramon, j-pegs are a neccessary evil for me as I have to wire images from slow connections, tiffs or anything similar would be impossible.