Gimp is a pretty good freeware if you're looking for something less expensive. Its pretty similiar to Photoshop in my opinion. But, I haven't tried to do anything really in depth with either software package. Good luck!
Yeah Gimp is for photo editing just like photoshop (although alot of people use photoshop to create nowadays)...I have been using Photoshop ever since the 5.5 days, pretty much taught myself everything, I am nothing close to an artist, but i have learned enough tricks to make decent labels
I just started messing with Illustrator & Photoshop and I don't think there is anything you can't do. They're definitely not cheap, but maybe you know someone who can get you the student price. It will save you around 65%...