Check http://www.nonags.com - There are some freeware programs that do file reading and conversion, and I have a feeling I saw one that would read PSD's. Anyway, Nonags has lots of useful stuff.
What about this Photoshop Elements I saw in walmart? I know it isn't Photoshop 7.0 but it has got to be better than the other image programs I have seen. And I don't have $700 to blow on Photoshop. Hell I can get a winch for that kind of cash!