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What version of photoshop are you running? I have both CS3 and CS4 running under Lion with no issues.
There are some annoying things with Lion but they can mostly be dealt with. If you don't need to upgrade (eg iCloud) then SL works great. I haven't had any real problems with Lion though, and most apps (that can be) have been updated to work with it.
fwiw I mostly run Firefox.
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