PAUL O wrote:I am concerned that much of the (fantastic) functions offered by CS2 are far in excess of what I will actually need.
Photoshop offers more functions that almost
everyone needs

, even many imaging professionals who do nothing but Photoshop all day don't use or often even know half of what Photoshop is capable of. There are some things in it that are very useful though that are not in Elements.
PAUL O wrote:Will Elements suffice?
Photoshop Elements users have often bemoaned the lack of the "Curves" function, and I think the "gradient" and "quickmask" functions in Elements, I understand these have finally been added in the recently released Elements 5.
Photoshop CS3 is just about to be released, so if you're considering buying the full package, you might consider waiting a month or two to save yourself an upgrade fee later.