I'm a dyed-in-the-wool Photoshop and Corel (Painter & Draw Graphic Suite)...but these are part of my illustration and photo business, so I can justify their high cost.
Adobe Photoshop Elements is a bargain, and is only slightly less powerful than full-bore versions (frankly, I am very happy with my CS4 version of Photoshop and I doubt I'll ever upgrade).
If you want "free"...as has been suggested, I recommend GIMP, which is a very powerful and well-supported photo editing solution.
Just remember, if you want features and powerful capabilities, whatever program you decide on is going to require a steep learning curve. Luckily, the popular ones always have tutorials available, which makes things a lot easier.