I am thinking about getting a portrait prime lens for my Pentax DSLR, but there is none available in my preferred focal length of 55mm.
The Pentax kit lens only goes down to f 5,6 at 55mm, and this leaves the background too sharp in many circumstances.
Can you create that effect with software, or would it look bad?
Yes, you can, sort of.
It requires practice, but as far as I know, it's very hard to simulate the bokeh of a good lens.
I haven't got Photoshop yet, only Lightroom. Any alternatives to Photoshop to get this effect?
Photoshop has a set of filters dealing with "blur". Photoshop Elements has at least a subset of these filters.
Microsoft Digital Image Suite may have something doing something similar, but Microsoft has withdrawn the product from the marketplace because Vista "has it all", sort of.
Corel Paint Shop Pro appears to have similar features, although the information on their web pages doesn't contain any specifics. They have a trial version for download, though. Also check out Snapfire.
Ulead PhotoImpact 12 has a tool called "Focus", which may be relevant. See Corel's web site.
Pixel may have this feature, too, sinc e it's so common. There's a trial version on the website.
Cinepaint, a colour managed version of the
GIMP. Free software.