Computer Graphics Bulletin Board

I want a good program to photoshop anime (for example:changing colors of the picture) Which program would be the best? Some one told me that Adobe Photoshop works, is that true? If so which one should i purchase? What other photoshop programs work? I kinda want it a little cheap too but i guess it could be kinda expensive as well.

I use Photoshop 7 and it works great.

The newest version so far is Photoshop CS3.
I have an older version, and after trying out the newer version in school, i find it the same, except that CS3 is a lot more expensive...
There was a promotion not long ago, the CS3 cost $79 (very cheap! Normal price: $700-600 plus...)
Photoshop is really fun and easy to use! I love it!