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Placing a File -- JPEG or PSD?


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To clarify, I remember I ran into an issue of the file being too big because of all the file merging (I was using PSDs).  And we had a discussion about the difference between placing JPEGs and PSDs and I *think* the consensus was, since it's PSE and you can't have a live link to the file, there is really no difference in quality if you place a JPEG vs. placing a PSD, as both are smart objects when you place them.  I was just verifying that my memory/understanding was correct.  

Judging by your reaction though, I suppose, I should stick with placing PSDs unless I have a lot of files to merge.  Am I understanding you correctly?  Thanks!

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