This is all EXTREMELY helpful thank you everyone! But this new knowldge I have that dpi "doesn't matter" leaves me wondering, what DPI should I use when I save my images for web? If it really doesn't make any difference, then I could use ANY dpi setting. So I guess I will just keep on using 72 DPI. Is that what you guys use? I mean, according to that article that posted from scantips I could save my images at 7 dpi and they would look fine on the web. Would a 7 dpi image load faster than a 72 dpi image because it would have a smaller file size?
"Would a 7 dpi image load faster than a 72 dpi image because it would have a smaller file size?"
No, you're still associating dpi with filesize. Don't. There is no link.
DPI only relates to how you print an image and is meaningless without inches (document size) also being specified (dpi = how many image dots per inch of paper) e.g. 10" x 8" @ 300dpi.
On the web, all that matters is the number of pixels (width x height) and image compression: (JPG, GIF, PNG)
If you want a 300 x 300 pixel image for the web, prepare the image to those dimensions then Save For Web as JPG, GIF or PNG. Forget DPI because it has no influence on how your image looks on screen.
Just width x height measured in pixels. The more pixels, the bigger the filesize.
Smaller images (less pixels) with more compression download faster.
100x100 pixel images download faster than 300x300 pixel images but they're smaller on screen.