I have CS5 upgrade. Do I still get to use Photoshop CS4 on another computer?

When I purchased Photoshop CS5 (as part of CS5 Production Premium) I wanted to let my wife use CS4 on her computer. Got the message that it was already installed on another CPU. So I guess the upgrade version, still counts the old versions in the 'allowable installations', right?

Since you're essentially asking about the EULA...
The way I read it, if you follow the licensing agreement to the letter, though you are allowed to install the software on up to 2 computers, you are neither allowed to actually use it on more than one computer at the same time nor is a second person allowed to use it.
Regarding your specific question, the pertinent paragraph seems to be (emphasis mine):
5. Updates.If the Software is an upgrade or update to a previous version of Adobe software, you must possess a valid license to such previous version in order to use such upgrade or update. After you install such update or upgrade, you may continue to use any such previous version in accordance with its end-user license agreement only if (a) the upgrade or update and all previous versions are installed on the same Computer, (b) the previous versions or copies thereof are not transferred to another party or device unless all copies of the update or upgrade are also transferred to such party or device, and (c) you acknowledge that any obligation Adobe may have to support the previous version(s) may end upon the availability of the upgrade or update. No other use of the previous version(s) is permitted after installation of an update or upgrade. Upgrades and updates may be licensed to you by Adobe with additional or different terms.
Whether you can actually install an upgrade on a different computer and run Photoshop on two computers at once may be a different story.
The EULA in its entirety can be found here. Not exactly light reading...
http://www.adobe.com/products/eulas/
-Noel

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Supply pertinent information for quicker answers
The more information you supply about your situation, the better equipped other community members will be to answer. Consider including the following in your question:
Adobe product and version number
Operating system and version number
The full text of any error message(s)
What you were doing when the problem occurred
Screenshots of the problem
Computer hardware, such as CPU; GPU; amount of RAM; etc.

I have 1 employee, and want to let her use PhotoShop LE on her computer. Can I do this? She can register with my serial number and password, etc., and it would not be for commercial use.

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I guess you have posted on the wrong forum. This forum is for Photoshop Elements and your query seems to be more related to Ps Lightroom.
Anyways, not sure about the legal implications, but technically Adobe allows the users to use the product with same serial number on two machines so as far as you have a valid and legitimate serial number registered in your name, YOU can use the product on two machines.
I am although slightly confused when you say "1 employee..." and "not be for commercial use..".

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Unable to contact the iOS software update server gs.apple.com
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Install the latest version of iTunes.
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Try to restore from another known-good computer and network.
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HT204406 So I have iTunes Match, but I still get ads on Apple Radio. Any ideas?

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I have CS5 upgrade. Do I still get to use Photoshop CS4 on another computer?

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