Open Office.org is a great open source office suite. It's very similar to Microsoft Office in features including a spreadsheet program, word processing, and a desktop publishing program.
Think of Open Office as the Linux equivelant to Office suites. It's community supported, easy to use, lots of documentation and free. Best of all because it's open source and community supported it gets better all the time.
Photoshop Elements, PhotoImpact and Paint Shop Pro are all very capable programs you can buy. Ive seen PhotoImpact 7 quite cheap on Ebay there is a newer version but the next older one is fine. If you can buy academic software you could probably pick up one of the latest versions at a good price.
Ive used InDesign 2 for a year now and still wouldnt be as comfortable designing something like that in InDesign as I would in Photoshop. InDesign will surely do it, but it is pricey and has a learning curve. Simple desktop publishing programs probably couldnt handle the layers you might need.
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