You can easily add blur using depth of Field in Guided Edit or from Filter > Blur > Gaussian Blur, Motion Blur... When using blur filter from Filter menu first duplicate layer with image, apply blur filter then create layer mask and use Gradient Tool on layer mask (set foreground background colors to black/white) to restrict blur only to some areas of the image.
Filter -> Blur
Photoshop Elements is Photoshop but with less features, so Photoshop is better but it is professional level software. For home use or to get started Photoshop Elements is OK.
No Photoshop CS5 and Photoshop Elements are separate programs.
Well Photoshop Elements is basically Photoshop, but that everything is already ready there. it's like easy version of Photoshop.
Actually, photoshop elements is already released.
Yes you can, for example people usually use Filter > Blur > Gaussian Blur filter to soften edges of the mask.
No, Photoshop Elements does not have Contour.
Photoshop Elements 10 is not update, it is newest and best version of this software.
Barbara Brundage has written: 'Photoshop Elements 4' -- subject(s): Adobe Photoshop elements, Digital techniques, Image processing, Photography 'Photoshop elements 6' -- subject(s): Adobe Photoshop elements, Digital techniques, Image processing, Photography 'Photoshop Elements 8 for Windows' -- subject(s): Adobe Photoshop elements, Photography, Image processing, Digital techniques
Yes, you can create animated GIF in Photoshop Elements. See related link for tutorial.
Beside PSE You can open any other format that Photoshop Elements have to offer to save image.
Adobe Photoshop Elements 11 is the February 2012 release of Adobe Photoshop products.