I get this question a lot!
So here's how I do it.
Every client gets a CD with a ton of pics (usually over 600)
The pictures get slight adjustments. They don't need much. Most of the time I get the perfect exposure in the camera so they don't need much Photoshop.
I call these Proofs, and yes I do include a release so they can make their own prints anywhere they want.
The Digital Negatives are the images directly from the camera. If the client wants them, they can have them.
Any prints or albums included in the package (or ordered from the website) get the full treatment - Wrinkles removed, zits zapped, laugh lines reduced, as well as other distractions in the picture reduced or removed. The color is enhanced a touch, and a bit more photoshop magic is performed.
Since I take so many pictures at each wedding, there is no way I have enough time to do this to ALL the photos. But, anything that I do retouch for the album, IS included on the CD.
I hope this all makes sense - feel free to PM me with specific questions, and I'll gladly answer them.
E