Hi, No you haven't got the wrong program - I have used elements for ages and you can pretty much to most photo editing you want on it.
Layers are great, they are like putting tracing paper over your picture and then drawing on that to improve the original without changing the original until you have it correct and want to.
Have a look here for a basic explanation of layers -
There are lots of elements tutuorials on the web, just google, just make sure they are elements ones and not straight photoshop or the links on the menus etc can be slightly different.
The other tool I find great is the clone tool (look it up on the help) basically you choose an area of the picture to copy over an other area using the paintbrush (e.g. spots marks etc can easily cover up this way).
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