CS4 better, but if your computer is single core or dual core(Lower than 2.0GHz), with 256mb ddr2 graphic, I suggest CS3. CS 4 have many great feature, like 3D view.
cs4 has too many features, thats why its also expensive... only buy cs4 if you are going to use cs4 for its new features... if not stick with cs3 as it's still good, and relatively cheap right now...
I'm gettin PS CS4 shortly. I bought CS4 Flash recently and enjoy using it (though why did they move establishing linkage around? Jerks ...). I'll let yeh know how PS CS4 is from my view, though I never really used PS much at all.
i still use 7.0 as its still pretty good, dont feel like pirating CS3 (which I know most of you did). even a student license for cs3 cost more than maya and 3ds combined.
Do you need a 3D app in PS for that? The way things went so far (making the skin in PS, testing in 3D program) seems still good to me. And it's more accessible for less powerful computers .
Ghan has said he has fixed this. Monovertex please confirm this fix. This was only a problem with people that had signatures in the upper levels like not the special members but the respected members.