No but they colaborate. Photoshop have more features but Lightroom have better cappabilities for photographers.

Photoshop Lightroom does not have such a tool. Anyway you can use external editing software like Photoshop or Photoshop Elements.

See related links for more details.

Photoshop Elements is essentially a "Lite" or hobbyist version of the regular Photoshop.

Lightroom and Photoshop (either regular or elements) do different things and target different audiences. There is some overlap in image editing functions, but the easiest way to describe it is Lightroom is a complete photo and data management solution. Photoshop is not.

So it really depends on who you are and what you want to do with the product. Serious photographers generally purchase Lightroom, whereas folks who want basic image editing might get Elements, and for gold-standard do-all professional-level editing you get the full Photoshop. Plenty of people get both Lightroom and Photoshop.

For more in-depth details, see the Related Links.

Yes, it is powerful enough to handle Lightroom 3. When installing the software upgrade be sure to back up your data first, install the software, follow the onscreen prompts and remove the older versions of Lightroom (if you have them).

You have 3 options for editing in Photoshop: Edit a Copy with Lightroom Adjustments, Edit a Copy or Edit Original, choose option you like. After selecting command Photo > Edit In > Edit in Adobe Photoshop (Ctrl + E) new window will open where you can choose option.