Here is how I make a gray version in Photoshop, and I think this can be done in Elements too:
1. Copy Background to new layer
2. Add another empty layer above this
3. Fill top layer with with 50% Gray
4. Set top layer to color blending mode
5. Merge top layer down
You should now have the original Background layer and a gray version above it.
Or, you can get almost the exact same result with a free B/W plugin here:
http://thepluginsite.com/products/ph...bies/index.htm