Hi Moon Unit, just a few thoughts for what they're worth (my opinion only).
I'm currently studying toward a master of science in psychology (specialising in neuroscience). I started studying psychology partly out of boredom with my old career (IT), partly as an effort toward "right livelihood", but mostly because I wanted to learn how well neuroscience aligned with Buddhist principles and meditation techniques. I'd like to integrate some aspects of the Buddhist four-part model of the mind (vinyana, sanya, vedana, sankhara) with current psychological theories of emotion. There is a debate in another thread about whether or not this is a wise approach, and certainly one challenge is keeping meditation/spiritual practice and study/career separated. Here's the thread if you're interested:
http://www.vipassanaforum.net/forum/index.php/topic,1823.0.htmlIt sounds like you're more interested in applied psychology than research, and I personally think that pursuing a career as a therapist is a great goal if it's done with the motivation to help those suffering from mental illness. But if my own study of psychology is anthing to go by, you should perhaps be prepared for some disappointment, as psychology is still really in its infancy and there is an awful lot that is unknown. Also be aware that there are numerous sub-disciplines of psychology, all with differing philosophies, which are often in conflict with one another. At some stage during your study you'll need to choose which of these areas you want to focus on/specialise in.
With regard to analysing the past, psychodynamic psychotherapy (based on Freud's ideas) is heavily based on recovering and analysing childhood memories, and is generally aimed at developing a "healthy" ego rather than dissolving it, as Matthew points out. A member of my family was trained in this area, and I have to say that it resulted in changes in her that have been very destructive both to herself and to our family. In addition, a friend of mine spent a couple of years in psychodynamic psychotherapy and ended up a mess; she subsequently had to seek help from a clinical psychologist to undo the damage from the psychotherapy! However, these are only my own indirect encounters - I have not personally experienced this form of psychotherapy, nor studied it in any depth, and many people have found it to be beneficial. To me it does seem very antithetical to Buddhism; for example, anger is considered to be a good thing that should always be expressed, no matter what the cost to others. Freudians consider the only other alternative to expression of emotion is repression.
Cognitive behavioural therapy is more widely accepted and, unlike Freud's ideas, has good scientific support. And Matthew alluded to a newer area of cognitive therapy, based on "mindfulness":
http://en.wikipedia.org/wiki/Mindfulness-based_cognitive_therapyAlthough I agree with Matthew that the emphasis of this discipline is still on "healing" the ego, it is still the closest thing to Buddhism you'll find in psychology. Plus it's a relatively new and constantly-changing area of psychology, so there is potential to contribute to its development. Personally, if I was interested in applied psychology, that is the way I would go.
We all have to earn a living somehow, and I think psychology is an exciting and worthwhile area to pursue. I wish you all the best.