The newer Atom processors are pretty capable. I wouldn't at all be surprised if they could run Photoshop. Perhaps not comfortably, but you could get work done in it without too much annoyance.
The Atom processor you've listed is nearly 10 years old, with performance on par with a Pentium 4 from the turn of the century. If you can find something like a copy of Photoshop 7 (2002), it would probably run acceptably on it. But any modern version of PS? No way.