Elements is a cool program, but be careful. For some reason (and Adobe should know better) when I installed Elements on my machine it messed up some of my preference settings in other adobe products (ie photoshop prefernces palette).
Reinstalling the affected programs seemed to fix the error, but what a pain in the a**. . .
Other then that, it is a great tool with very simplified menus (I like playing with the "liquid gallery" (I think that's what is was called. . .:
Yeah, I was prepared for the graphics program prefs to be overwritten, but not my acrobat and pagemaker!
I just upgraded to the Photoshop Pro 7 myself (had 5.5 a few weeks ago). I've only had Elements for a few weeks as well, I have discovered that many functions of photoshop are combined and simplified. The results aren't nearly as precise as what you'd get with photoshop, but when you're in a hurry, it can be a lifesaver!