We recently replaced an old dead scanner with a new "cheapie" Epson Perfection (I don't recall the model #). It was nothing special, their entry level scanner. Worked OK for us to scan in prints. Given the prices of the multifunction printers/scanners/faxes you may want to look in one of them as well. Here's one place to find some info ..
http://www.tomshardware.com/2006/02/...call_the_tune/
As for software I use Paint Shop Pro though it has a bit of a learning curve, as would Adobe Elements. I'd be surprised if Canon didn't throw in a basic photo manipulation tool, if only to convert RAW files. If you're a complete novice you may find this good enough to start with. I've not used Picasa but know a relative who does and she swears by it. When you're comfortable with the basics you may want to peruse the levels, curves, sharpening and layers/masks "tutorials" found here ...
http://www.prime-junta.net/pont/Phot...1/_Levels.html