I was taking outdoor pics tonight during sunset and i was getting highlight warnings. any suggestion how to avoid it.

Additional question. When I took the picture the result wasn't quite what I expected. The pictures look hazy. I had to Auto Fix with Photoshop.

Before:
<img src="http://pictureposter.audiworld.com/93072/seattle-pic-before.jpg">

After:
<img src="http://pictureposter.audiworld.com/93072/seattle-pic-after.jpg">

Auto white balance on the D70 ain't that good. Try auto -2 for slightly better auto. Better yet, try setting pre-white balance with a white sheet of paper before you shoot or get an ExpoDisk. Either one is a pain in the butt, but it will improve out of camera white balance.

Next, shoot in raw rather than JPEG to ensure you have the most flexibility later on in post-processing.

Keep in mind that the D70's default settings are to slightly underexpose .3 to .5 EV by default. Contrast and sharpness are also not that high by default. You could boost those in the on-camera menu. This may help achieve the look you want, but ultimately, you may want to consider using a custom curve. Search the dpreview.com D70 forum for details. Custom curves can give you better out of the camera results without the need to do so much post processing.

Had to convert pics for the forum. I printed out your suggestions and I will try them. Thanks for the tech help.