I have just graduated from PSE 2.0 to PSE 8.

Yes quite a jump, but that's reality.
However, I may regret this last upgrade.  In Element 2 I could modify / add to photos things such as text and custom shape tools.  I have yet (just a few hours on this new product) to find these features. 
HELP  - Am I to assume that I made a mistake by purchasing PSE 8 or am I just looking in the wrong places

I don’t think you will regret the change from 2 to 8 once you get used to the different interface. PSE8 is a powerful program with many new tools compared to earlier versions and you can even open images in tabs like CS4.
PSE8 does have some annoying features such as face recognition and smart filtering which run in the background and hog computer recourses not to mention annoying pop-ups asking “who is this” If like me you don’t really need such features you can turn them off in the preference settings. If you live in the US you can also get locked out of the program by signing up for Photoshop.com and quickly using up your free storage space and then having to pay extra for more bandwidth.
If you have not removed or overwritten PSE2 you may wish to run both versions side by side. For example I use PSE2 to make HTML web galleries which is not possible in PSE8 which only has flash templates available.
 

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