Which kind of photoshop would be the best for me?

Elements will do what you want it to. I'd recommend the full version of Photoshop, because I find its interface to be much more familiar (having used Photoshop since I was 5 years old). But, the fact that you are on a tight budget really narrows things down to Elements, which costs only $75. The full version of Photoshop, on the other hand, is $700.

A nice thing Adobe does that would really help you decide which one is really right for you is offer free 30-day trial versions of the software on your website. You can download both trials, and then decide which one you like best. That way, you can better decide if that extra $625 is really worth it.

I recommend GIMP, it has many features of Photoshop and costs nothing.

GIMP is the GNU Image Manipulation Program. It is a freely distributed piece of software for such tasks as photo retouching, image composition and image authoring.

artweaver (looks like photoshop but is free).

http://www.artweaver.de/

GIMP (opensource image manipulation program)

http://www.gimp.org/

Paint.Net (what I use)

http://www.getpaint.net/

PhotoshopExpress (online stripped down version of PS)

https://www.photoshop.com/express/landing.html

OK, none of them are really photoshop, but it's free. If you find yourself wanting something more complex, then go ahead and download the trial of Photoshop to see if you like it, but considering that you're getting out of MS Paint, I believe you'll like these program.