Photoshop is perfect for photographs.
If you are dealing with solid shapes like logos, Illustrator is the one to use.
If it's for layout it's InDesign.
If I was creating stickers with photos on I would get the image right in Photoshop, Create any necessary graphics in Illustrator and put it together and add text in InDesign. I would use InDesign to create a high resolution PDF to send to the printing company.
For decals/stickers you're better off with a vector based package, Illustrator or Corel spring to mind. You can do it in PShop, stick to the vector tools though.
Adobe CS4- fottyshop for photo images, illustrator for vector/shapes, etc.......yer sorted for software!
Just need to get yer head round using it............magazines like Digital Arts are great for tutorials: http://www.digitalartsonline.co.uk/tutorials/index.cfm