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It's CS 2; CS is short for "Creative Suite." Photoshop is part of the "suite," along with Illustrator, and many others. I'm not sure whether you're looking at all of them as a package, or just Photoshop. The second option is much less, but still the price of maybe 15 years of web hosting.
Whether Photoshop is worth the money or not really depends a great deal on what you're planning to use it for. Photoshop is about $700 or $800 USD, while Photoshop Elements is $99 last I heard. But Elements doesn't have the Curves adjustment, so if you want to work on contrast and brightness you're forced to use Levels, and for color it's the Color Balance tool. I'm guessing that means nothing to you, and if that's the case, the full version isn't worth the money. I simply wouldn't use image editing software without Curves.
There's also The Gimp, which is actually better than Photoshop in a few ways. For example, it can display a true 12 or 16 bit histogram, which can be d@mn useful if you use a digital SLR, use RAW mode, and do your own linear conversions. I never really got used to the interface in The Gimp, though ... I prefer PS myself.
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