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That's Photoshop Elements, it's a light version, but it should be able to do what you want, and so should The GIMP (free).
The full version of PS (which gives all the kewl layer effects) ranges from $1168 for the normal CS5 version and $1519 for CS5 Extended. If you want the box that'll be $1671 thanks!
This is a blatant rip off, as if you go to their website, its US$699 and US$999, and we still have to pay 2x the price even for a digital copy. There is no reason for this other than blatant greed.
Buying Photoshop is saying you don't mind being ripped off.
Oh, and if you still want to buy Photoshop Elements, buy a Wacom Bamboo Pen & Touch instead. You'll get it PSE free with it. Harvey Norman sell them, and mine was $99. Besides, they're so kewl.
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