I have a very early version of PSE  on my HD even think it's version 1. It came as a bundled package when I bought my Pentium lll about 5 years ago or so. It's quite capable of handling layered work although I never used it since I'm using CS3. I don't see any problem for that use. I keep it around for its handy redeye removal filter which can also be done with a little more work using other packages. I would also eye up PaintShop Pro if You're on a limited budget. I hear GIMP is a free and suitable alternative as well.