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Hi Guy,
This question crops up with great rapidity on the forum, and there's no real answer.
You can pick up Elements for very little money (when you consider how powerful it is) but there are a few bits that CS5 does that Elements doesn't.
Having said that, most things can be done in different ways and you can probably replicate everything in Elements if you're prepared to put the effort in.
Now comes the question, should you jump now? I would say no. CS6 is out in Beta and has some pretty awesome tricks. By my guess it'll be on the market later this Summer with a gigantic price tag. This will be closely followed by Elements 11, which will have lots of stuff from CS5.
My suggestion would be grab a copy of Elements 11 (when it comes out). Once you register it with Adobe you'll be inundated with 'Special Offers' to upgrade to CS6 which will probably be a better deal that buying CS6 outright. Whether you take up these offers will depend on how you're progressing with Elements which you may find is quite adequate for your needs.
Many professionals are perfectly satisfied with Elements for the work they do.
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