I shoot RAW 90% of the time. RAW is the way to go for many situations, but not all.
RAW files are very large. If you do a lot of burst shots you will only be able to do approx 6 to 8 shot bursts before the camera has to write the data to the card. (At least that is the way it is with mine) If you need 20 shot bursts, I suggest you go with .jpg.
Also data storage can quickly become an issue. My 4GB card will hold about 1,100 large .jpg files. The same card will only hold about 400 RAW files.
For viewing and converting RAW files, I use Adobe Bridge/Camera Raw which comes with Photoshop CS2. You can upgrade to PS CS2 for about $150.00. (BTW: Adobe Bridge/CR "Rocks" but it is a computer hog) I bought my upgrade from B&H Photo. Great price and service. http://www.bhphotovideo.com
If you would like a free RAW conversion program, I suggest RAW Essentials by Pixmantec. There is a video tutorial and download links at: http://pictureflow.fileburst.com/_Tutorials/RawShooter_premium/index.html
I would not bother to buy the RAW Essentials PRO ($99.00) as Adobe has just purchased Pixmantec and they will most likely be phasing it out.