I'm not a Photoshop user and I'm not heavily into photo-editing, so I can't authoritatively compare Photoshop Elements to the full Photoshop. Most of my photo editing consists of touching-up my digital pictures with software such as Corel's Paint Shop Pro to make myself look slightly less frightening.

Photoshop Elements would probably fall into the same market category as Paint Shop Pro, so that's probably a decent comparison to make. I'd say Paint Shop Pro is a bit more consumer in focus, with good tools but also a lot of automatic fixes, while Elements is a bit more skewed to the digital professional side.

Elements has a number of one-step fixes and corrections that will appeal to consumers, but it also has a lot of the more skill-intensive tools of the full Photoshop. I'd say Photoshop Elements is more suited to the digital professional looking for a lower-cost tool, or the power-user on a budget, than it is the amateur photographer looking to do basic touch-up their digital pics.

Photoshop Elements 7 and Premiere Elements 7 can be purchased separately for US$99.99, or bundled for US$149.99, and are available now.