d50 - "normal" vs "none"???
I haven't looked at the in camera settings for sharpness in awhile, but in Nikon Capture the settings are as follows (for Raw images):
I think this represents the same options available in the camera for Jpegs, and as you can see, any amount of sharpening is sharper than none. On the other hand, if you set the camera settings to none and sharpen your image in PS it's possible to get better results than any of the in camera settings if you're proficient at that sort of thing.
Personally, my camera is set to low and I apply additional sharpening in PS. Not that I consider myself to be proficient at this sort of thing, mind you!
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