Overview: editing RAW files
RAW files produce the best photo-editing results because they contain about four times the image data of an 8-bit JPEG file. But this extra size can be annoying, as it uses up more hard drive space, so files can't be emailed, and initially, they look rather drab compared to a JPEG file. That being said, some quick editing in the Elements' native Camera RAW utility will usually produce an image that looks a lot better than most JPEGs.
One aspect of RAW files that might confuse beginners is that they can only be opened/processed using the Camera RAW utility, which is quite separate from the Quick/Guided/Advanced edit modes. It's a bit like having a specialist application within the parent application, which is Photoshop Elements Photo Editor. If you double-click any RAW file icon, it has to open in the Camera RAW window within Elements rather than opening inside the Quick, Guided, or Advanced workspaces (double-clicking any JPEG, TIFF,...