Photoshop 7 Color Setup

On Color Settings screen I don't know quite what to use.

Top selection was set for "Web Graphics Default" I would use this if I were saving pictures to the Web? But I don't do this very often.

But Most of the time I am getting pictures from digital camera or scanning old pictures to print into a scrap-book, to frame, etc. So what selection would be my best there? Would the "Photoshop 5 Default Spaces" work best there? If not, what would you recommend?

Also, I'm not sure how to set file open commands.
I open a jpg and get a box asking me to these options:

Use embedded profile

Convert document to working space

Discard embedded profile

I don't understand what to use here. I've used Photoshop for years and never had to think about this, so am confused. Always use RGB color and save as JPGs. Guess this would have connection to the Color Setting screen?

Any help will be greatly appreciated.

I use:

RGB - Adobe RGB 1998
CYMK - US Webcoated (SWOP) 2

The reason being that I want to have the option of printing images with a lot of color options.

The reason a popup is coming up is that you changed your settings. You should select Convert document to working space, then save it with a Quality of 12. I suggest you either:
A) Save all your .jpgs again.
B) Try to remember your old color settings, possibly reinstall Photoshop.

Thanks,

I will try that. I just started using Ver. 7 and never had to deal with this in earlier versions. Got a Limited version with my scanner about 10 years ago and been using it ever since.!! Like this one very much and want to get it working right.

Thanks again,

Dolores