Mike, raw or NEF (Nikon Electronic Format) is your digital equivalent of negatives. You can download from the the card (or camera if you want to look at it that way) using a variety of programs, I use ACDSEE for that simply because it's fastest, but yes Nikonview can be used and according to Nikon is the preferred method. (at a hundred dollars a pop for the [Capture] software, I'll bet it is). You can at that point use any program that is capable of using the raw plugin, such as Photoshop 7, CS, but I'm not sure about Elements 2. What you would normally want to do is, edit the nef file in capture then convert it to tiff or *.psd and edit that with photoshop or the other adobe programs. If memory serves me though, if you try to edit a tiff, some of the functions are grayed out. One point to add, the original nef file is not changed, even if you edit it with Nikon Capture, unless you save the changes you made WITH Capture. Even if you save the changes with capture, you still have the option to cancel changes at any point and time and revert back to what the camera recorded. (nifty, huh?)
There is very little to do with a "normal" photo once you have made all the corrections to it in capture. At that point I'll save it as a jpeg or tiff depending on which printer it's going to.
If you know that you are going to be doing any extensive editing to the print, then I would save it in *.psd format and use photoshop on it. Doing the editing the two ways I just described keeps the quality as high as possible.
The Nikon nef file stays on your drive as a nef file, you have essentially made a copy of it and converted that copy to what ever format you choose to save it in, when you choose the save as function in Capture. Now if you edit in a program that supports the nef format, then basically the same thing happens, a second file is created (your save as format) and saved as what ever you choose. Nef is a proprietary format from Nikon, that can not be changed by other programs. I know this explanation is not crystal clear, but I think it gets the point across.