Need help on what size file I need to have good image.

I just got the Sony DSC-F707 5 meg pixels. I have it currently set up for the top setting and have TIFF turned on. I want to be able to produce up to 8 X 10 photos. Do I need the Tiff turned on in order for this to happen or will the jpeg do for that. Can I set the meg pixels lower for smaller prints and still have them come out good. I am just trying to figure it out so I know how many pictures I can put on my 256 stick. I am green as can be but very excited to enter the world of ditigal photography. Feel free to shoot me an email if you have the answer to this. Thanks, Bill

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