Gosh, I can't even remember back that far, it's been a long time since I worked with PS 6, and it was definitely my least favorite incarnation of Photoshop.
Well, first off, I'm fairly sure there's no functional difference between the educational version and the retail version. The only real difference I've ever noted is in the price and the "Educational Version" written across the bottom of the boot screen and in the About box.
Now let's think...Um...I'm pretty sure that Layer Fill options are new to PS7+ (good for "glassy" effects, Fill affects only layer data, leaving layer styles at their own settings), as well as a few new (but not very different) layer blending modes. I'm also fairly sure that there are new filters, but I can't think of any specific new ones offhand.
Oh yes, there's also their celebrated new tool, the Healing Brush/Patch Tool. It's very similar to the Clone Stamp and simply dragging and dropping good data to a damaged area, but these tools have a special algorithm that blends them in with their surroundings by matching color, tone, and texture (IE: Sampling an area of purple and applying it to an area of white, the healing brush would turn the applied purple to white).
I can't remember if this is an upgrade, but I don't recall PS6 having dynamic brushes. PS7 allows all sorts of customizable settings for brushes (alternating colors, shape rotation, texture, size variation, etc.). But actually, I don't know many people who use that at all aside from the presets.
That's really all I can remember that's new from 6 to 7, I'm sure there are other things I forgot.
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