Cheers guys
Clive, RAW files are files that are exactly what the camera see's when you expose the sensor. These files record all details / highlights / shadows etc. These are bigger files to store on a memory card, so lots of people don't bother with them in favour of the good old compressed J-pegs.
J-pegs are a good go between, but do not give you the same control as a raw file when it comes to editing. When shooting raw files you can convert lots of things before you even send it to photoshop, for example if it is under exposed you can increase the exposure, same with white balance.
This picture is a combination of 4 raw files with different exposure settings. 1 set at good exposure, then 1 at +2/3, then 1 at - 2/3 and another at - 1 & 1/3EV. The files are then exported into a programme called Photomatix Pro, an HDR (High Dynamic Range) Processing package and the pictures are combined. As the title suggests, what this gives you is a depth in dynamic range, so that all of the highlights / shadows etc are combined. It gives you a sometimes unreal effect but something slightly different.
For the best results, you really need a static scene or subject. The pictures should be taken on a tripod so that you take the same picture and you should be in full manual mode, including focusing. Ideally you want to fire off 3 / 5 or 7 shots to cover the range, mine works ok with 4 though, but could have been better.
HDR is one of the things I have lined up for the photoshoot we have spoken about. for your P1.
Hope that hasn't bored you too much.