Here's a link to a post by Jessica Sprague. It has screenshots and she uses CS3 I believe.
http://spraguelab.squarespace.com/bl...r-the-web.html
It's a little different since she updated it. I do the following:
Flatten
Sharpen
Image Size 600x600
Save for Web
Optimize to 150kb or smaller (for the galleries - I don't optimize it if it's not going into a gallery with a size limit).
I don't change my resolution because save for web does that automatically.