I use Photoshop Elements 6.0. It cost about $80 I think - it has most of the features of the expensive versions. I mainly use it for editing and organizing my photos, but it works very well for pixel art too.
I actually prefer Elements 2.0 - it has less bloat and loads much faster. However 6.0 has some great features.
I actually prefer Elements 2.0 - it has less bloat and loads much faster. However 6.0 has some great features.