In general you want to set your color policies in Photoshop to what is becoming a Photo Industry standard- the almost universally accepted Working Color Space is Adobe RGB 1998, and the rest of the policies are detailed here, in the video below.
This will get you two very important things. First, you will be working within very common policies, and will be on the same page with almost everybody you’re working with- clients, your lab, other associates. Second, it will assure that your printer drivers are getting what they’re generally expecting to see- files generated in Adobe RGB.
Here’s how to set that up:
There are certain circumstances where a different setup is either beneficial, or required… but this is a very good place to start.
