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Erik, you beat me to it! Great explanation! 

brook, your photo size dialogue box shows at 72 ppi (pixels per inch) because that is the standard jpeg resolution of digital cameras.  Do not confuse dpi with ppi (a common mistake) because dpi refers to "dots per inch", in the case of print.

When it comes to "print" (refer to the image below) by decreasing the image size (leave the 'resample' box unchecked, you automatically increase the ppi. 300 ppi  seems to be "optimum" for most printers (and even "overkill" as Erik has mentioned) but you can play and see what kind of results you get at 150-200. You will  notice that when you resize for print, your file size stays unchanged. No loss of data means a higher quality output!