I've done this before. Works very well as long as you take enough shots. You will also want to have a pretty beefy machine to load a ton of images into the stack. A very busy street will take many many images to get 1 with no people.
It looks like auto-align was introduced with CS3. You could align manually, or use a tripod and remote shutter. The smart object stack modes (such as median) were also introduced with CS3. With CS2 you would have to mask layers, instead of CS3 finding the most common pixel (median) and choosing that automatically.
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