What camera are you using? Your camera should have come with a raw converter that is probably pretty good. Check the disc. Fish around your manufacturer's site to see if you can download it if you can't find it at home. Your manufacturer's raw converter will be "best" because it is the only one that isn't reversed-engineered. The manufacturers won't share the complete code. All the other software makers (Adobe, PhaseOne, etc) effectively "hack" the raw conversion to get it right - but they're doing it pretty well these days.
Also, if you upgrade to CS2, you'll find that Adobe has developed a very good raw converter. However, Photoshop is such a resource hog, the last thing you want is yet another app open. And just to quibble with Digital Matt a little: Capture One is good, but really not intuitive. As such make sure you have someone show you how to run it best, or be prepared to spend a weekend trying stuff out until you get the hang of it. Considering Capture One LE (the "light" version) is $99, you should consider putting that money to an ugprade to CS2.