Also...you can download a free trial of Photoshop Elements from adobe's website to try it out, full featured, for 30 days. You don't have to open $100 worth of software just to see if you like it. I would try that first; you'll be able to see if it runs well on your hardware, if you like it, and if it does what you want. You shouldn't have a problem doing what you need in PSE 5.0. Others you can try out if you don't like it include Corel's Paint Shop Pro XI, and of course, the professional version of Photoshop.
Also, don't forget about catalogue software. PSE 5.0 and Paint Shop Pro both have some basic cataloging (or DAM software...stands for Digital Asset Management) built in. Other, more full featured software includes the new Microsoft Expression Media (used to be called iView Media Pro), Portfolio 8, and iMatch. Also, adobe has a new tool that combines cataloging and RAW workflow in one, called Photoshop LightRoom).
I know this may be a little overwhelming if you are new to digital...but one of the thing newbies usually overlook is finding a way to manage all of these files you are about to create. It's a somewhat daunting task, when you think about it, but there are ways to do this.
Good luck, and let us know if you have more questions. BTW, my bottom line on this is that you will probably be fine for a while with Photoshop Elements (both the editor and the DAM part of the software). There are some limitations, but it will take you a while to bump into them if you are just starting out...so have fun, learn a lot, and share those pics.
