I’m Thinking About Getting Photoshop For My Computer…?

The only “artsy” program my computer has is the Paint program that came with Windows. I’m looking for a program that I can take my drawings (that I’ve put onto my computer with my scanner) and color them in/add special effects, etc. I would like to purchase Photoshop CS3 because I believe that’s what I’m looking for. If I’m correct, CS3 is the newest version of Photoshop and, most likely, the best.
How expensive is this program (Photoshop CS3)? Is there a program that would be better? What is the next best Photoshop program I can buy if CS3 is too expensive? I’m thinking of around a $100 spending limit. (I may be able to go up to $150; it depends on whether my mom is willing to pay for some.) Any effort toward finding me an answer is appreciated!
My Dell’s info (I don’t know how much you need so I copied a bunch of stuff…):
System: Microsoft Windows XP / Professional / Version 2002 / Service pack 3
Computer: Intel Pentium III Processor / 930 MHz, 512 MB of RAM

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