There is no mention of RAW format in the link above - you would need to research more by reading some reviews. So I assume it will save all photos as jpg type; they will still work in photoshop.
Memory stick is a Sony propriatory flash storage system - it used to be a lot more expensive than SD etc. but I have not looked at the prices lately. If you decided to buy this camera now and brought some memory sticks then changed to another brand later you would not be able to use the memory - there is a chance that the next camera would not support SD either but more devices can use it like laptops.