Congrats on the step up! Yeah, color space only applies to jpegs. If you're shooting mostly for screen output and big-box-store commercial printers, and/or you're delivering digital files to clients, I'd suggest you set it and forget it at sRGB. If you edit and print your own, and you already understand color management and have calibrated your system, you may prefer to work in Adobe for the somewhat larger color gamut. But if you print an Adobe portrait on an sRGB printer, you'll be appalled at the result -- blotchy, bruised-looking purplish and yellowish skin tones, it's pretty awful.
Congrats! I've had a couple, keep thinking I want something "better" but always end up coming back to the 5D2. You'll make wonderful images and the camera will give you wonderful files.
