Didn't know about OpenOffice, thanks for that tip. Ad astra per aspera
CS2 can be slow and cranky, especially when starting up. CS3 is somewhat smoother. I have a beta of CS4 somewhere, but betas make me nervous so I'm waiting for the full version before I try it out.
From what I've heard CS4 has a few nice new features, but Photoshop itself isn't incredibly spiffed up or different.
Photoshop Elements is about £80, but I could never get my brain around the Elements approach. It's like most of Photoshop, only - not.
Also, the filing system is so bad that I can't even think about it without clutching my head and making pitiful weeping sounds.