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I mean...there is no competitor to Photoshop...now...the closest thing to PShop which is free is the Gimp...but its unstable on Windows machines...but if you're running Linux its a lifesaver (since adobe doesnt support linux.. ) ...but yeah go with PShop7...then upgrade to 8 when it comes out this fall.
Man why is everyone forgetting Corel PhotoPaint 11 ? It's the greatest goddamn photo-editing program there is, the only downside is that it's slower than Photoshop, making it hard to use for photos above 20MB and nearly obsolete for 50+ MB. Even CNet says that <_< i suggest everything to try this prog (but nothing earlier than v11) before they say Photoshop's the best.