S40 Resoultion and Compression

I"m new to the digital camera world having recently purchased a Canon S40. What settings should I be shooting at? I have two 256mb cards so I have plenty of storage. I would probably not be printing any pictures larger than 5 X 7. I have been shooting with the resolution at "M2' and the compression at "superfine" using the JPEG fromat. What should the settings be and what are the advantages and disadvantages of various settings?

Thanks.

With 2200 shots so far, I'm progressing away from novice status and entering newbieness. ;-) I usually shoot using L mode superfine. I've tried RAW, and it's great, but it's a little more involved to do the post-processing plus the size is a little prohibitive than practical for vacation pictures even with a 256 meg card and Image Tank.

I like Large mode since it gives you the maximum size image so you can do some cropping if needed later and still have a lot of flexibility in terms of sharpness and amount of information. I'm not planning on printing anything larger than 4 x 6, but if I have a really nice shot in L mode, that's all the better if I want to later on.

I might suggest using a smaller format if you want to take multiple shots using the higher speed multi-shots per second settings since L does take longer for the camera to store.

EM