Justine's hubby provided the technical explanation that I couldn't have given you
Yes, I shoot in RAW 100% of the time. Why? Because it makes editing my photos easier. Do you edit in a version of Photoshop? If so, when you go to open your RAW files a new editing window should pop open called "Camera RAW" - from here, you can essentially correct your exposure, white balance, recover blown (over exposed) portions of a photo, adjust your color balance, etc. You can do all of these things with a JPG but with a RAW file you are not "distorting" the image as much as you would a JPG. I also shoot RAW because the files are larger if you want to print enlargements (like, really big ones...just in case, lol)
Funny though....the more I learn about Photoshop, the less I use the Camera RAW editing program. I just do very basic corrections to exposure and white balance...everything else I do in regular PS.
Definitely learn how to shoot and edit in RAW...then decide which one you want to go with. MOST professional photographers shoot in RAW, but not all of them. One of my favorite photographers does not, so I find that a bit inspiring
Oh, but if you're shooting in RAW, ditch the 2GB CF card if that's what you're using....I suggest an 8GB card (which, on my full-frame Canon 5D will hold about 450 RAW files) but you can get away with a 4GB card (about 210 photos on my camera) - the files are HUUUUGE!