maurizio firmani

Compressed NEF *is* a lossy format; the dynamic compression used to reduce size causes the loss of data, as well described here:

http://www.majid.info/mylos/weblog/2004/05/02-1.html

I try to summarize where and how the loss alters the images here (in italian, sorry):

http://www.emmeeffe.org/mf/tecnica/nef_compresso/index.html

(use http://babelfish.altervista.com, it gives a rough but almost good translation of a web page, or use this link:

http://translate.google.com/translate?u=http%3A%2F%2Fwww.emmeeffe.org%2Fmf%2Ftecnica%2Fnef_compresso%2Findex.html&langpair=it%7Cen&hl=it&ie=UTF-8&oe=UTF-8&prev=%2Flanguage_tools

)

1) Photoshop CS has ver. 2 of Camera Raw, that doesn't support D70 NEF format. You need to download the update version of Camera Raw, supporting D70 nef format (version 2.2, you can dowload it here:

http://www.adobe.com/support/downloads/detail.jsp?ftpID=2460

2) Photoshop cannot save in NEF format in any way because there is no reason to do it. Raw format is good for cameras, not for retouching software.