For my sites, I use Medialayer
. Their cheapest plan is $9.95 per month (with a discount for paying on a quarterly, semi-annually or annual basis.) I have nothing but praise for Medialayer, their service, support, and everything else.
If you want to have complete control over the entire server then you'll have to get a Virtual Private Server host, and those will cost you more. I like Linode
for all my VPS needs (running a VPS at Linode and most other VPS companies means that you'll have to know a thing or two about remotely administering a Linux server.)Here's a list I found
of other hosting providers that are dirt cheap (though I've never used them so I can't vouch for them.)
I'm afraid I can't help much with Photoshop Elements 5 besides pointing out that it's really old. If you have a newer Windows version like Vista or Windows 7 then there may be problems with getting it to run.
Edited by Andrew, 24 March 2011 - 04:52 PM.