Generally you always want to shoot at the highest resolution and best quality and that will give you the greatest leeway in cropping and post processing to bring you the best image possible for printing.
You can always crop or resize the pictures later for emailing as a full size pic emailed will be over 2 1/2 megabytes , a pain for anyone you email if they are on dialup (10mins+ to download)
If you really never want to shoot that high a resolution to save memory or you just don't want to bother with a lot of resizing etc then for 5x7 you could get away with 1.5 mp.
Have a look at this chart for some ideas. Though just remember in years to come you may want to print larger or get a poster made, and that will not be possible shooting at a lower resolution.