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LR does video as well.
You can edit externally in Elements and then bring it back into LR. However, it depends on how you shoot which way you want to do it. If you shoot in RAW format, then LR has more flexibility. The RAW tools in LR are the same as in the CS version of Photoshop (the expensive one). I switched to LR, mainly for the RAW controls, and hardly ever go to Elements anymore (I have 9).
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