I need to make a logo. Which contains a jpeg picture. next to which I want to write letters and make a logo with gradient,shading, shadow etc. When I make it Is it a psd file. How do I make it good looking for web as a gif or jpeg?
First, you need to flatten the layers of your .psd image. Do this as a 'save as' or copy it to preserve the original's layers in case you want to modify it later. For a predominately photographic image, save it as a .jpg. For more graphic type images (which sounds more like what you have), save it as a .gif (first change the image mode to Indexed Color).
Photoshop has been shipping with a program called ImageReady for some time now. Go to File > Jump To > ImageReady. This will let you experiment with lots of different web settings allowing you to choose the most appropriate for your needs. You can even view several copies of your image at once so you can compare different settings and file formats. It has many other features too, allowing you to create rollovers and image maps if you want.
The great thing about ImageReady is that it will leave your original file alone, so you can leave it as a PSD for future manipulation.
Use either .gif .jpg or sometimes .bmp for websites. You don't use .psd for websites. The only reason you would save in .psd format is to be able to keep you layers so that you can modify each layer and then save as something else.
Nate
"If you're not living on the edge, you're taking up too much space!"
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