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The 8600 GT is 30-40% faster in games and Open GL.
8600 GT can decode HD better and is faster in 2D operations.
8600 GT supports Direct X 10 shader model.
8600 GT runs hotter.
They are both underclocked in the MacBook Pro so don't expect the same numbers as manufacturers unless you can clock them up.
The 8600M GT will certainly perform a lot better than the Mobility X1600 regardless of the VRAM difference. That said, Photoshop performance depends on CPU and disk performance as well as having enough RAM. The GPU hardly factors in.
There are benchmarks comparing the new MBP with the old one here and here.