I am new to the digital scrapbooking world. I currently use traditional scrapbooking and am starting to experiment with digital. I use Photoshop cs3. It is very expensive and I have heard Photoshop elements will do a lot of the things you would need for digi scrapbooking. What I do is find free downloads of paper and things on the internet and also tutorials and go from there. My sis-in-law uses shutterfly.com which I have tired but you are quite limited with the pages you can make. But the books are quite inexpensive.
Here are some places to download digi scrapbook supplies for free. I have yet to buy any of my supplies. You will need to download winrar to up-zip the files. After they are unzipped I but them in a folder on my hard drive and organize them that way.
http://www.rarlab.com/download.htm Click the top one and download. After it is downloaded click the .exe file and install. Every time you use it, it will tell you to buy it. Just close it. You'll never need to buy it.
http://shabbyprincess.com/downloads.asp These are all free downloads. Most are very large. Depending on your internet they will take awhile. But the stuff is awesome.
Shabby Princess also has tutorials on there website. They also have digi stuff for sell. Any digi scrapbook stuff you buy will be a download. If you are uncomfortable paying money for a download then just use the free stuff.
http://scrappity.blogspot.com/ This is a blog of digi stuff she makes. Look at in on her blog and click the upper right link to download any and all. Very nice stuff.
You can also google free digital scrapbook downloads and get a bunch of hits.
Have fun!