Cheapest way to get a copy of Photoshop?

Get on that famous auction site and see if someone has a second-hand copy going. You'll be fine with anything from version 7+, not much has changed IMO.
 
Photoshop Elements is excellent for the price - but there are a few key features missing unfortunately.
As mentioned above - being a student gives you massive and I mean massive Adobe discounts.
You can buy the whole Adobe Suite for a really low price as a student.

Other than that the second hand route - just make sure you get is legit.
Far too many EBay'ers will sell you pirate software.
 
Student version, as suggested above, would probably be your best bet. That way you can make sure it's 100% legit and will be up to date :)
 
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