blue or green screen - it won't matter a great deal though green is more common for video - the main thing is that whichever of the two colours you choose, your subject shouldn't have any of that colour (or too close to it) on their clothing as the keying function in the video editing software will drop ALL of that colour out - have seen bad greenscreening where presenter was wearing a tie that had green stripes and when edited the stripes became transparent and showed the other background through it
lighting needs to be done properly too - otherwise you can get green (or blue) reflected onto clothing or skin from the screen and have that drop out too.
There are some good tutorials on green/blue screening on Youtube - just do a search.
As for video editing - you have an impressive array of Adobe software there - one of the suites I'm guessing. The unfortunate thing is that none of them are really any good for video editing.
If you want to stick with Adobe your cheapest option is
Premiere Elements 7, a consumer oriented version of Premiere Pro but much, much cheaper (around AUD$100 if purchased as a download from Adobe store online.
It handles greenscreening reasonably well and gives many other options in editing - Picture in Picture, multiple tracks (both video and audio), lots of effects and transitions as well as good presets for rendering movies as flash, mpeg, avi etc. suiting most desired outputs, and is easy to use.
hope this helps