RAW or RAW+JPEg? Just RAW definitely.
RAW or JPEG? Depends.
Do you just use it to take snaps or are you trying to take images you'd be proud to have on your wall? I would say if you have just one lens on it, youthe on it came with, dont use filters or a tripod and you are happy with what you get so far, stick with JPEG.
RAW will give you a larger dynamic range than JPEG which means if you have a high contrast scene, say a sunset against the mountains or whatever, the RAW will help you more easily avoid having either a white out sky or black mountains. However you will need a RAW convertor in order to take advantage of this. Elements 8 is one, Canon DPP that came with your camera another, and know how to use it.
Also if you set the white balance wrong, or have it on auto and the camera gets it wrong, in RAW you can correct this later. With JPEG the camera decides and once the pics taken thats what you get.
So choose, RAW or JPEG. You dont need both.