b.) Trying to get a 'version' that is compatible with my OS. Its telling me that my version
is OS 10.6.8 ? Apparently, the version I downloaded is OS7.
Are you mixing terms up?
Sounds like your Operating System is OS X 10.6.8.
Elements 12 requires at least OS X 10.7
System requirements | Adobe Photoshop Elements
See Apple - Upgrade your Mac to OS X Mavericks. for upgrading your operating system (if your computer can run it).
OS7 sounds like a reference to Apple's mobile operating system iOS7 which is for mobile devices (iPhone, iPad), not desktops or laptops.