Originally posted by PePe I shoot almost exclusively RAW. Elements uses exactly the same RAW converter (ACR) as CS4, and 99% of the commonly used corrections and adjustments can be made here. This is in 16-bit format using exactly the same tools as CS4. It is only after this when you may have to change to 8-bit processing depending on the tool you want to use.
I shoot almost exclusively in RAW also and I would do most (all) of my RAW processing in Lightroom if I went this way, and then use the pixel editor for things I can't do in Lightroom.
For the kinds of things I think I'd want to do outside of Lightroom, I have to think about whether they would benefit from 16-bit. My initial reaction is yes, but I have to give that some deeper thought.