The latest version of Adobe Elements is version 9, not 4. I use an expensive Photoshop CS5 as I got it very cheap years ago and have updated it regularly. I think that PS Elements9 , at about £60 is an excellent programme that will do all you need - if I were starting again I would use it as CS5 is more of a professional tool., but it takes a bit of learning and it is worth buying a manual to learn all about it.I am sure others will comment on the other photo editing software. Most of these have red eye removal as a standard feature.
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