Typical post processing for me is pull into ACR, tweak contrast and maybe some levels. Save as jpg at highest resolution. Then pull into CS3 and filter "sharpen" then resave as jpg. For internet sharing I use photobucket and whatever they do to resize while they pull them up I don't know. Occasionally I'll use "sharpen more" rather than sharpen but there's a fine line w/ sharpen!
I really like the 16-85 - its the perfect compliment for the 70-300VR that I also have. Since I just got the camera I'm still trying to work through a lot of what it can do and get settings just right with it. I know the lens right now can do more than I'm making it do but the big keys for me were VR and the fact it was quite a bit better than the 18-55 kit I got w/ my D50 and reports were it was also better than the 18-105 that's shipping as the kit with the D90.