Hi Toby
First of all, Photoshop CS3 is definitely NOT for beginners. It is both VERY expensive and difficult to learn. Typically, if you do graphics design as part of your everyday work then it is worth the expense. I know other people do use this version, which is their choice and I do not condemn them for that. I have tried the full version of Photoshop CS3 as a trial, so I can speak from experience - and I am an experienced computer user and graphics designer.
Myself, and I know George, both use Photoshop Elements. Think of this as the baby of Photoshop CS3, but don't be fooled by this. It is an extremely powerful version of Photoshop CS3, with some of the features disabled, but is a lot easier to learn. As a side-note, I know of people who have purchased CS3 and still also buy Photoshop Elements - because Elements has a 'Photo Organizer' feature that CS3 does not have. That is another story so I won't confuse you here.
As regards cost - Photshop Elements 6.0 will cost you around $99, as opposed to Photoshop CS3 costing $649. These are Adobe online store prices for the full versions, but if you shop around you could get it cheaper.
For a beginner I would recommend Photoshop Elements. You certainly won't be disappointed, and as myself and George are familiar with this software we can give you help if you get stuck with it.
I know new digital cameras can be very daunting with all their menu choices, but persevere and 'jump right in' and you'll be surprised.
I have been brought up over the years on manual 35mm cameras, where you set everything yourself. When I switched over to digital, I must confess that it took me a while to get used to the large array of menu choices available to achieve the same results. So I know exactly what you mean about being confused.
The best thing I can suggest is to get your camera and just take a picture. It will have a default setting which should give acceptable results. Once you've seen what they look like, then you can experiment. Although I'm not familiar with your particular model of camera, they generally give some basic Scene Modes to choose from - e.g. sunsets, portraits, landscapes, etc. You just need to decide on the type of subject you will want to take a picture of, then look up in your user manual what button presses you need to make to get your camera into that particular mode.
Just don't be afraid Toby. You can't damage your camera by experimenting. The most you would lose is a particular photograph you wanted to take, but if you can go back again another time to get it, then you've nothing to worry about.
Of course, the beauty of digital is that it does not cost you anything financially by just taking loads of pictures whilst you're experimenting. That is the key here, experimentation. Do not be intimidated by your camera. You will be glad you persevered when you finally see the results of your efforts.
We have something else in common here Toby - hiking. Kathy and I also do a lot of countryside expeditions, getting out into the clean fresh air and marvelling at the great British countryside. I'm sure you have siimilar beautiful places in your neck of the woods 'across the pond'. We do a lot of birdwatching as well, so we get to see the countryside and the wildlife we so dearly love.
I hope I have given you food for thought.
Don't hesitate to get back to me for further info and advice.
Laurie.