I shoot 99% jpeg with the K10, and have gone through a number of setting preference phases. I'm currently shooting at Natural Mode, 0 sharpness, -1 saturation, and +1 contrast, but that too might change.
I used to use Bright Mode for its one shot boost for the sharpness, saturation, and contrast, but eventually found that I didn't quite like some of the choices that the camera's processing engine made, so I went back to Natural, and close to the defaults on each of the processing parameters, choosing to process for these effects in PP where I have some degree of control.
The reasoning behind 0 sharpness is that the K10 processor emphasizes the dark in boosting contrast for sharpness, and this sometimes creates a dark outline for some subjects that I can do without.
The -1 saturation is to tone down the "electic" colors of CA an PF -- I can't really get away from these in my concentration on birding, with the long teles (usually shot wide open or close), TCs, and unavoidable high contrast shooting conditions. I find it easier to correct for the color aberrations with this setting. I also usually like my colors a bit muted anyway compared to the "pop" that most seem to like, and can always boost the saturation after correcting for CA and PF.
The +1 contrast keeps the whole thing from coming out too flat -- it was pretty much a matter of finding this from experimentation and personal preference (which I guess this all is. . .).
In PP, I usually just crop to print size and sharpen a little using Focus Magic at a low setting, and/or PSPs Hight Pass sharpening at low to moderate settings.
I generally use the default program line and shoot in Aperture Priority to control DOF or keep the shutter speed as high as possible.
I doubt that many share my preferences in this, so take it for what it's worth. . .
. . . and welcome to the forum!