While I have seen it claimed many times that GIMP is a Photoshop replacement, having used both systems I don’t agree with this statement. That said, GIMP is a nice alternative to Photoshop for the majority of users’ needs, but by no means a complete and seamless replacement.
The biggest problem I had when trying to use the two systems simultaneously (Photoshop at work, GIMP at home) was the vast difference between the menu structures. Accessing the same function would be in two totally different places, depending on the program. If you have this problem, or are looking to make a transition, take a look at Gimpshop.
Gimpshop is a GIMP “add-on” which makes the menu and dialog boxes very closely mimic Photoshop’s. While the translation isn’t 100% dead on, from what I can tell it is pretty close and definitely worthy of a look.

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