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I have both on my computer, and I use both as the need arises.
I use PSP for most quick jobs, or when I scan photos and don't plan on doing
any color or gamma correction. I use Photoshop on more complicated projects
because the interface lets me articulate my changes better. The interface
for color and gamma is far superior to PSP.
If you're just getting started and think you'll be doing some amount of
image creation and manipulation, get Photoshop. If you plan on scanning lots
of photos, get Photoshop. There are tons of learning resources for that,
compared to PSP. If you're doing simple mods on screen shots, get PSP. If
you can't justify the cost of Photoshop, get PSP. I occasionally offload
some work from our GA (graphic artist)group, and I find it comforting in
knowing how to get an image just the way I want.