Let's have a Picnik!

Picnik, fotoflexer, phixr, and sumopaint are all free image editing programs.  I edited this photo from my Mission Trip to Peru last summer using Picnik.

Picnik has editing tools for cropping, rotating, resizing, color, exposure, sharpness, and red eye.  It also has create tools for text, frames, effects, stickers, touch up, and seasonal.  It allows you to upload from and save to Facebook, MySpace, Picasa Web, Flickr, and Photobucket.  Some of the premium features cost $$ to use, but for simple editing projects, picnik worked great and was fun to use.