I'm using Photoshop 7, it has way more than features than I'll ever need...people are all excited about Photoshop CS and that's wonderful but as a photojournalist, I do not manipulate images so I don't see the need to "upgrade".
If I don't get things right "in the camera", the image goes in the recycle bin. In my line of work, there is just not enough time to try and correct photo-mistakes.
Maybe it's just me, but I think the new "shadow/highlight" feature in Photoshop CS is not only overused but "fake looking". I can spot "shadow/highlight" corrections a mile away..the skin tones go really weird. Frankly, if the shadows or highlights are important, expose for them. If not; and if your main subject is the most important part of the image, too much shadow detail is unnecessary. Remember the old adage...."if something in the frame doesn't add to the strength of the image, it subtracts from it"...in powerful images, less is more.
Photoshop is a great tool and it's tons of fun to play with and "create" images, photo-illustrations and to add text to photos for promotional purposes, etc.
BreezeBrowser: For viewing, batch renaming, creating HTML pages and organizing your images....it sells for $69 and is probably the best money you will ever spend, get it here from Chris Breeze he's a great guy. Photomechanic and other "more professional programs" cost more but often are less intuitive and more cumbersome to work with. Click here for more about BreezeBrowser
ProShow Producer: By far the best product for making slide shows from still
images. I use Proshow Producer but you might be quite happy with ProShow Gold,
it has almost all the features at a lower price.
Click here for more info on ProShow
Dreamweaver 3 : Used to create this website, and I never seem to need any other features, so why pay to upgrade?