jpeg images are saved with lossy compression. Each time a jpeg image is saved the image quality is degraded. Always keep your original image (the "digital negative") and save the manipulated image (cropped, enhanced, etc.) as a seperate image file. Most photo editing software enables you to specify the amount of compression (higher compression = lower quality).
DPI doesn't really apply to image size or quality when displaying images on the web (like PBase). The quality of the displayed image is highly dependant upon the quality of the PC's monitor and the display settings (i.e. how many bits per pixel).
IMHO, for e-mail and displaying on the web, try to hold the resolution of the image down to around 800 x 533 because most people set their monitor resolution below 1280 x 1024. Also set the compression level of the image to medium (level 6). That will make the image about 100 KBytes without too much loss in image quality.
For more info, try reading some jpeg primers. Here's one:
http://amol.org.au/capture/course/fundamentals.html