From a quick glance at Adobe's web site, it appears that Elements 2.0 is a tool that lets you do some minor touch-up and enhancement to images taken from a scanner of digital camera. Most scanners come with a similar utility and I would assume that Elements is the same thing but with a few more enhancements.
Photoshop is a tool that let's you create/alter/enhance any image. The two programs really can't be placed in the same category. One other thing - Elements 2.0 lists for $99.00 USD and Photoshop lists for $649.00.
There's always a better way. The fun is trying to find it!
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