You'll most likely get everything you need from Elements. The full version of Photoshop is powerful image editing software designed for use by industry professionals. The difference between Elements and CS5 is the number of features.
With Elements, you're missing out on plug-ins, automation, more filters, more pixel-selection options, animation, 3d editing, the more advanced masking options, and lots of other stuff I can't remember right now. You won't have as many customization options for your tools, nor will you have the full selection of tools. But if you're a casual user you won't need these features.
I use Photoshop every day and there are some features I rarely (or never) use. Elements gives you a good selection of basic photo editing tools. You still have layers, and you can still make pretty good-looking composite images.
You get all the popular tools (pen and paintbrush and whatnot) with Elements. Elements comes with the basic image adjusting features and a few fancy things. It uses a trimmed down version of Adobe's graphics editing engine, so it's a reliable little workhorse when you need it.
It will probably be all you need.
If you like you could download them both for free and try them out to see which better suits your needs.
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