I shoot in RAW almost all the time now.
Basically like VeddieEdder says, you have to keep at the forefront of your mind, that your shots WILL need work doing on them, even if it's only a little bit of sharpening and tonal adjustment.
You see a RAW images, as the camera has recorded the data, and that's it.
Once you've got over that memory hurdle (which I sometimes still have problems with), then you're set.
I personally use RSP to convert my RAW files, for a number of reasons. It's not free (infact I don't think you can buy it anymore since Adobe bought it), but you can still download the 30 day trial, or download RawShooterEssentials, which is it's free sibling.
Anyway, I use RSP to browse and convert my RAW files.
RSP (and RSE) is set in such a way that the toolbar is in a logical order, and you work from top to bottom.
First off, I make sure the White Balance is right. More often than not, now I have the 30D it gets it right, but occasionally it needs a little tweak.
I then adjust the exposure compensation. I'f I've meted the shot correctly, I shouldnt really need to touch this, but at the moment I do. I'm personally getting it correct, at the shutter time, more times now as I progress, but the option is still there for the tweaking to adjust the overall exposure of the shot.
I then adjust the shadows and higlights contrast sliders to intensify or lesson the contrast of either the shadows or the highlights respectively. Normally only a little tweak here.
I then adjust the levels and the curves, and maybe adjust the colour stauration or intensity(vividness).
Once that's done, I set the conversion going, (which only takes a few seconds).
I have the conversion set to 16 bit TIFF, which then opens into Photoshop.
The first thing I do in Photoshop is save a copy of the freshly opened TIFF, into a backup folder.
This means that if I lose the image Ive been working on, I don't need to go back to RawShooter to reconvert the RAW file.
Once the backup is saved, I rotate and crop the image first. Then save it for the first time with its new name. (making sure it's saving a new file and not over the backup
)
I then work on it, saving it along the way, and keeping any adjustments to layers, so I can go back at any time in the future and undo most parts of my work.
I then save that fully processed file as a layered TIFF, (so it can run over 100 meg occasionally, depending on how much work / layers have been done / created).
I then use a script to save a small, resized, sharpened and bordered JPEG from that.
I then move the processed TIFF to another folder ready for burning to disc.
So therefore I have 4 versions of my files
1. The original RAW
2. A backup TIFF of the converted RAW
3. A TIFF which has been converted from RAW, edited and processed and resaved, fullsize, with layers.
4. A 700px JPEG for the web (bordered, sharpened, and with my signature tag on it).
So I basically have 3 backups of the same image.
Some may say my method is overkill, especially with regards to how much space I use. Personally I say storage is cheap nowadays, super cheap, I'd rather save as much as I can full size, so I don't have to worry about compression, should my skills improve in the future and i need to redo some of my shots, or reprocess them etc, which would mean resaving a file (and therefore I don't need to worry about image degradation each time I save).
Hope this helps
Marcel