What exactly does Photoshop do?

Photoshop is the standard in graphics creation and/or editing.

What once started as a humble photo touch-up tool has grown into a multi-layered graphical powerhouse.

Is it worth the money? well I guess that depends on what you wish to use it for.. For a professional yes it is, for a hobbyist you could probably get away with a lite version or GIMP like others have suggested.
 
You can buy it online through the Adobe store. It is $699 for the standard edition.

It is a professional graphics and photo editing suite. It is also a key tool used for web design and development.

http://www.adobe.com/products/photoshop/photoshop/

It is worth the money if you actually plan to use it either as a hobby or professionally. Otherwise, just use GIMP for free.

The online version is just a simple photo editor. It has none of the Photoshop CS functionality.
 
you can use an online verison of photoshop for free if you want to

www.photoshop.com

photoshop is a picture editing software that enables you to do many things with it :D

like photoshopping a picture to make it look pretty! and many more options! like with CS4 your even able to animate things too :D
 
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