hmmm good discussion going on here. We use a Canon 20d and a Canon Rebel XT (350d) and a Sigma 8 lens. Use Photoshop or the $100 PS Elements 3. Virtually the same options just in different locations.
I stitch to 2500 high x 5000 width 8 bit .tiff which creates a 33mb file which is good for archiving but too large to use on our website.
For Full Screen
Resize to 1600 x 3200 13mb and "Save for Web" convert to .jpg 1.3mb
Web Display is 450 x 900
For Small Screen
Resize to 800 x 1600 .TIF and 3.66 mb and "Save for Web" converting it to a .jpg file that is around 320kb.
Web display is 275 x 450.
Rule of thumb: Viewer height is about 30 to 35% of image height. Example: Image height of 800 might have a web display of 240.
Background: I actually did some research on this. My objective was to achieve best quality when comparing QTVR .mov to Java delivery techniques with same image display windows.
Recent comparision may be viewed here:
AND IMHO you should sharpen after resizing as a last step before converting it to a .jpg. Do not edit the new .jpg - go back to the original fix it.. then resize and sharpen.
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EasyPano - Panoweaver