I am using Photosuite 8 as a part of EMC 8. When I open a jpg photo and mess with it, like merging 2 photos or adding text, and then save the result, I sometimes lose lots of resolution. The file size might be reduced from 1500kb to 500 or even 50[size="4"][/size]kb. I am telling the program to flatten the photo to save it, but I don't think it should save the changed photo in such a lesser resolution than the original was. Is there a setting to increase the resolution of the saved photo?

I don't think the resolution of the photos is changing (unless you deliberately resize your photos) but the quality of the image you are saving. When you "save As" your modified photo, select Options and look atquality the photo quality slider setting. If it is less then 100% then the image quality is reduced from the original thus giving a smaller file size

Also check under the File/ Options setting.

I think that under the Edit tab, there are options that you can set for the quality of the collage that you are making. You probably want to pick a higher setting than the default.