As a professional graphic designer, I'm spolied with Adobe Photoshop (full version), but would recommend "Elements" for day to day hobbist use.
If your looking to save a buck, and want to do basic image editing - you can download GIMP for windows
http://www.gimp.org/screenshots/ which is FREE and can do most things photoshop can do.
Neither will do video - but you can buy the Adobe "Elements" as a package for photo and video -
http://www.adobe.com/products/psprelements/
Hope you make out ok.
M.