Some good advice so far, but I havent seen anyone recommend Mariner Write (wordprocessor) and Mariner Calc (spreadsheet) Price when bought together as a package: $ 89.95. There are boxed and downloadable versions, and the prices obviously vary.
If you can get an edu discount get Ms Office 2004, if not possibly consider a copy of MsOffice v.X, which you should be able to pick up second hand on e bay.
You might want to consider Nisus writer express (wordprocessor) and Mesa from P&L Systems (spreadsheet). Theres also open office of course, but I dont know alot about it.
I think that you'll find there are some excellent options out there that wont tax your wallet as much as Ms will. I think I'm correct in saying that all options have a downloadable test drive version of the software. So my advice is to download and see which one meets your needs best. Personally I use Ms Office 2004, but thats mainly because I had an edu discount. I dont use Powerpoint (Keynote 2 instead) and I dont use Entourage (I use apple mail).
I used to read alot of good things about Eudora e mail application when I first started using macs some five years ago, but havent seen it written about much lately. Thats probably due to the fact I havent looked. You might want to check it out, it used to get some really good ratings. Powermail is also another e mail app you might want to look at, and so is mailsmith. If your transfering e mail data from a pc and your using outlook, definately look at outlook2mac
http://www.littlemachines.com/
Theres alot more choice on the mac than you think and I'm sure there are lots of people who can think of other good apps to recommend.
As for the photo stuff, and your other questions, I think youve had excellent advice so far. Trust me check out the apple downloads page and you'll be spoilt for choice. Just dont dip into your wallet until youve had a good look around.
Jason