JPG files are lossy-compressed images. This means that when you save a photo as a JPG, some detail is lost from the original image in order to save disk space.

When you take photos as JPG files with your digital camera, you may not notice this loss of detail, especially if you use a fine or super-fine low-compression mode. However, open a JPG file in photo editing software and resave it as a JPG, and you may begin to see some banding or noise, especially if the compression is reset to high. Do this often enough and your image becomes a deteriorated grainy or blurred version of its former self.

Whenever you modify JPG images with your photo editing software, while you are still working with them, resave copies as TIF images or your photo software's native uncompressed graphics format such as CPT or PSD. Only when you are done modifying your photo and ready to send it via disk, the web, email, etc. should you resave the photo as a JPG. Even then, consider saving one last backup copy of the photo as an uncompressed file in case you want to touch it up later.

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