How to Use the Photoshop Save for Web Tool
From Eric Miller, former About.com Guide
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Edit the JPEG Quality
File Size and Loading Speed
The most important setting in the right column is the “Quality” value. As you lower the quality, your image will look “muddier” but your file size will go down, and smaller files mean faster loading web pages. Try changing the quality to “0” and notice the difference in the photos on the left and right, as well as the smaller file size, which is located beneath your photo. Photoshop also gives you the estimated loading time below the file size. You can change the connection speed for this loading time by clicking the arrow above the optimized photo preview. The goal here is to find a happy medium between file size and quality. A quality between 40 and 60 is usually a good range, depending on your needs. Try using the preset quality levels (ie JPEG Medium) to save time.