Can the Macbook Air handle Adobe products well?

Yes.

I run CS 5 Photoshop Extended fine on the 1.6 gHz core i5 dual-core MBA 11".

It can handle Adobe products fine.

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Yup works great

Yep use photoshop all day on it and even did some after effects works great. It's 4x faster then my macbook pro dual core from a few years back. Such a fast little machine.

An 11" MBA would be perfect for you! It's lightweight, and could handle all of that, just make sure you get the 4GB and at least the 128SSD.

5.5 works fine on the Macbook Air 11. The Air made me upgrade from CS3 to CS5.5. CS3 broke under the latest Lion. Cost me $800.00 to upgrade my Design Premium. I didn't need the new features of 5.5, but sorely needed the compatibility.

I've been using Photoshop CS5.1 on my base base MacBook Air 11 1.4Ghz (Oct 2010 Generation).

It's fine for small jobs, but when I loaded a 800mb image, it was very painful.

But I designed my logo just fine, text editing, basic image retouching, no problem at all.

Bare in mind this is the slowest Mac CPU for the last 5 years and it still runs "ok".

However, the new Sandy Bridge MacBook Airs are beasts and I will be upgrading next year.

Using premiere cs5 the fans kick on but nothing terrible. Photoshop/Illustrator run flawlessly