Software needed: Adobe Photoshop Elements. There are a lot of other products on the market. Don't waste money on any of them. If you do, you will eventually end up with Elements anyway. You can buy it anywhere software is sold, including Costco. Theirs includes some extra goodies. They have a $30 off sale once or twice a year. Amazon has it for $69.88 http://www.amazon.com which is a great price. When you buy and register the program, Adobe will send you the link to a website with video instructional movies that are quite good. There’s one, “Magic Extractor” that will blow your socks off.
How to Learn: http://www.scrappersguide.com Linda Sattgast teaches you Photoshop as she teaches you to digital scrapbook. You can also search on YouTube for tutorials.
Download Picasa from http://www.picasa.com/ and learn to use it. It's easy and will help you speed up the scrapbooking process. It's free.