Paint.NET (Freeware).

Hi :)
Paint.NET.

Well worth checking out this program.
"Paint.NET is image and photo manipulation software designed to be used on computers that run XP, Server 2003 or Vista.

Every feature and user interface element was designed to be immediately intuitive and quickly learnable without assistance. In order to handle multiple images easily, Paint.NET uses a tabbed document interface. The tabs display a live thumbnail of the image instead of a text description. This makes navigation very simple and fast.

Usually only found on expensive or complicated professional software, layers form the basis for a rich image composition experience. You may think of them as a stack of transparency slides that, when viewed together at the same time, form one image.

Many special effects are included for enhancing and perfecting your images. Everything from blurring, sharpening, red-eye removal, distortion, noise, and embossing are included. Also included is our unique 3D Rotate/Zoom effect that makes it very easy to add perspective and tilting.

Adjustments are also included which help you tweak an image's brightness, contrast, hue, saturation, curves, and levels. You can also convert an image to black and white, or sepia-toned."

Latest version 3.5

Changelog:
"* New: Refreshed user interface with new icons and visual styling. On Windows 7 and Vista, it is enhanced for Aero and "glass".
* New effect: Blurs -> Surface Blur, by Ed Harvey
* New effect: Distort -> Dents, by Ed Harvey
* New effect: Distort -> Crystalize, by Ed Harvey
* New: Russian translation.
* Performance and memory usage have been extensively optimized throughout the entire program.
* .NET Framework 3.5 SP1 is now required, which has many built-in performance improvements.
* Disk space usage has been reduced by about 12MB by using NTFS compression on installation files related to staging (.MSI) and diagnostics (.PDB).
* Compression for .PDN images has been improved.
* Effect dialog responsiveness has been improved.
* Images open much faster, especially on single CPU systems.
* Startup performance on most systems will be better by about 20%.
* Memory usage has been reduced when more than one image is open.
* Rendering quality has been greatly improved when zoomed in.
* The selection outline is no longer animated. Instead of "dancing ants", a context-sensitive "XOR" stipple pattern is drawn. This has allowed for improved performance and lowered CPU consumption (and longer battery life).
* The font manager for the Text tool has been completely rewritten, which fixes many problems seen with crashes and missing fonts.
* On Windows XP, the Text tool has improved reliability and font selection (it uses GDI instead of GDI+).
* On Windows 7, the Text tool will use DirectWrite (instead of GDI) which gives better performance and greatly improved quality. On Windows Vista, you may install DirectX 11 to enable this feature; otherwise GDI will be used.
* The toolbar font list has improved usability, rendering quality, and significantly improved performance.
* The toolbar font list no longer requires an application restart to recognize newly installed fonts.
* When many fonts are installed, both memory usage and startup performance have been greatly improved.
* It is now drastically easier to move a very small selection.
* All installation prerequisites are now installed automatically, such as .NET and Windows Installer.
* Updates are now downloaded in the background, and installed after you exit the application. In previous versions, this was a foreground task and you could not use Paint.NET while the update was downloaded.
* Added a "Utilities" menu. Updates, Languages, and Plugin Errors have been moved there.
* Added a "Manage Fonts" command to the Utilities menu. This will launch the built-in Windows font control panel.
* Clicking the middle mouse button on an image thumbnail will now close the image.
* Improved the Unfocus effect.
* The DirectDraw Surface (.DDS) file type now allows you to select the resampling algorithm for auto-generated mip-maps.
* A processor that supports SSE is now required (almost all CPUs purchased this decade satisfy this).
* Fixed an issue with Gaussian Blur and its treatment of alpha values.
* Fixed a crash with the "Units" selector in the toolbar.
* Fixed a crash due to an overflow that prevented very large images from working (64-bit only).
* Fixed many other miscellaneous glitches and crashes.
* The Korean translation has been removed. Sadly, we were unable to find the resources to complete this."