In the long run you may want to just get a graphics program. I'm sure this isn't the first or last logo/graphic you will need to create. I also suggest photoshop as it can grow with your abilities and ventures.
I would also recommend the "Logo Creator" from Laughing Bird. It's neat and easy to use. Download it from download.com Obviously, PhotoShop is the ebst but it would cost a lot of money and time.
For the price of logo creator you could run a contest for cheaper and get a lot of logos to choose from. Or instead of photoshop you download the GIMP or Inkscape for free and make all of the logos you like.
Photoshop cannot create professional logos as it is a photo manipulation program. Kind of like how your camera can't make paintings, but it can take pictures of them. Use the right tool for the job: Adobe Illustrator from Adobe, or Inkscape (free from inkscape.org)
Yes innovati..agreed.If anyone want to design a great and very professional logo ,they must used Ai. I'm using photoshop before to design some logo for my client,but the result not really makes our client impress so much..then I've change to Ai..and the result was really great and funtastic.. and if anyone want to design a logo the professional way,learn from the pro..like one of the useful article that can be found at Vectortuts..
Photoshop is not a deisgn application, it is a photo manipulation program which has some tools that happen to have vector properties. Trying to make a logo in Photoshop is an abuse of the software, and you cannot have the same control over your vector logo as you would in any vector program. Logos are simple and you don't even need any tool other than the pen tool and possibly the text tool. You could use old vector apps from 1990 and have better results than even Photoshop CS4. And you ought to - photoshop was never designed to make vectors and it is insurpassable at what it is supposed to do, manipulate photographs. Think of the deliverable of a logo. It must be vector. If you design it in photoshop, and need to print it, all of a sudden it has to be 300DPI. Great, so now somebody wants to put it on a billboard. You have to re-draw your logo at every size if you design it at a bitmap, which is wrong. Even icons for computers now are designed as vector (and some advanced operating systems like linux have had thew capabilities to display pure vector icons on the desktop for over half a decade already). If it needs to be available at multiple sizes, like icons (which a logo absolutely HAS to be) you absolutely MUST create it as a vector, even if you take the vector and save it as a PNG for the web. End of story. This isn't something that can be debated - it's fact.
innovati is correct ... vector graphics are best for logos, due to the reasons posted above. BUT, if you want a quick & / or cheap alternative, many of the other solutions will do. ~tasty