I like photoshop, simply because it includes much more than just HDR. Photomatix is good and works a little faster than photoshop, but I think photoshop works just fine especially with it being updated for CS5. Do you have photoshop already?
I think this is actually one of those areas that specialty software outperforms photoshop. I prefer Photomatix myself, but I still use photoshop afterwards for sharpening and finer adjustments. I just don't think the algorithms in PS work as well.
CS5 has a really great HDR engine. Much improved over CS4 and lower. I think it works every bit as well as the dedicated HDR programs like Photomatix. And if you're a student, CS5 is pretty cheap ($200? $300?)
Thanks everyone! I use CS3 and Ive downloaded the Photomatix trial and it seems to work well. I was just cusious to see other opinions. I also considered NIK but haven't heard very much. Most of the good info is from photomatix.
I have used both the Nik HDR Efex Pro and Photomatix. Both are great programs although I prefer the Nik software.
If you go to this website ricksammon.info/p/rick-main-site.html (sorry it wouldn't let me put the actual link in) you can get a code for discounts on both Photomatix and the NIK products.