Steve,
Interesting. I didn't know that method. Now, SeniorS is right and I should have given a more detailed example of what this guy's workflow is like. This is something he does to adjust the skin tone and contrast using 3 different adjustment layers:
1. He creates a new adjustment layer with "Channel Mixer" and reduces the opacity of that layer to about 40%
2. He creates another adjustment layer with Channel mixer but this time, he changes the blend mode to screen. Then, again, he reduces the opacity to his desire.
3. Same process as above but now the blend mode is set to multiply and again, he changes the opacity of that layer to his desire.
4. He then groups all those layers together using "Layer Group" and then again, changes the opacity of the entire group to a lower setting!
5. Finally, once he is satisfied, he flattens everything.
Point #5 is my problem. Because of all the other processing he does, I find that sometimes, after all is done, I might want to go back and change that "skin tone and contrast" group to get a better overall result, but because he flatten everything, no can do!
Basically, everything he does is flatten all the time. His techniques are very interesting but the flattening renders them unsuitable for tweaking... almost like working directly on the background layer, which in my opinion is just about the worst thing one can do.
As for the format I use, I only shoot in RAW, and only work in PSD format. I have PS CS5 Extended. I only transform to jpeg once I'm done and ready to hand the product to the model/company.
I hope this makes my problem a bit clearer.
Kindest regards