I use Photoshop Elements 2.0. I follow pretty much the same workflow as you do, except that I sharpen after resizing as the very last step.
After I got my 350D I had a couple of photos rejected due to jaggies in areas where I had deliberately refrained from sharpening altogether. The effect was more one of steps rather than the normal sawtooth jaggies, a bit like the cheatline in this older photo (taken with a 4mp camera)
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Photo © Charles Polidano
but much more pronounced. Then I read that some people resized in stages, and now that I've started to do the same I haven't had the problem again. Maybe my version of Elements can't handle a lot of resizing at one go?
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