[stomachmonkey]

Everyone pretty much spot on so far.

GIMP is a good Open Source alternative and will do it all.

I would be reluctant to get a machine with it pre loaded unless the user specifically agrees to send you the install discs and all documentation including, (most important) the serial number stickers.

Without them you can't be assured that you will have a legit copy.

For consumers there is also Photoshop Elements, ~$80.00. Not sure how feature rich it is, have never used it.