I've never reefed yet racing (phrf) but reef all the time just sailing. It will definately affect performance. Generally you are better off using a # 4 jib and heavy wind tactics

:: You should never need to reef unless you are going out
:: in the ocean. The rest of the time you should be able to
:: sail with a smaller headsail and keep the boat on its
:: feet. Keep the sails flat and feather to keep the boat
:: flat. If you are sailing in a lot of chop then you want
:: to ease the jib a bit and twist off the main.
::

:: -Jason

::
:: :: Do you guys ever reef? I did not see any picture of
:: :: reefed main.
::
:: :: Anyone? What set up do you have?