I use
Elements 6 or CS2
Elements is about 80% the same as the full photoshop program, CS3 is the latest but very expensive! Elements is very much cheaper.
There are only a couple fo things you can't do with Elements but as a beginner or an intermediate level - you might not even notice the difference apart from the layout is different

I would suggest you look on E*ay for Elements, its quite reasonable on there.
A few people also use Paintshop Pro, you can get good results from it, but it takes a little bit of getting used to.
Good luck... I hope you have plenty of free time, its addictive!
Jenny
