Yes, you have enough space on a 60 GB drive for the OS and a few applications. That is the most common use of SSDs by home users.
Tecmo34 wrote a good introduction to the care and feeding of your first SSD. While a few of these points are up for debate, be very careful that, when you install Win7 on the SSD, no other drive is attached. If a previous system drive is attached, the PC will continue to need that drive to boot.
I've installed things left and right in a 40 GB partition on my SSD and it's only half full. Read the guide carefully for things like system restore points and page files and hiber files that can eat space unexpectedly.
Basically this will allow you to have things like desktop files, download folder, recorded programs, etc on your secondary drive while still using the SSD as a boot drive. This leaves a ton more room for programs on it and less worry about accidentally filling the SSD.
If you haven't already done so, it will be worth your while to visit the Adobe Photoshop forums. They contain detailed instructions for tweaking Windows and Photoshop for optimal performance. Recently they added a section about solid state drives. Highly recommended!