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I can personally say that paint.net works quite well for the vast majority of what most people do, and the UI is nice and simple (unlike gimp) Plus, it's faster than Photoshop.

I tried all of these a while back when I decided to get rid of all pirate software from my PC. After lots of testing (and frustration) I chose Photoshop Elements. It does everything Photoshop does as far as I can work I out (in other words everything I ever do with Photoshop) and it's laid out in the same way so it's easy for Photoshop users to switch to. I bought a Photoshop and Premiere Elements bundles for about £60 and I've never looked back!

In case you're interested I replaced Dreamweaver with Notepad++ (which is Open Source and does everything I used in Dreamweaver) and for Office I use Microsoft Office Starter Edition (which came free on my new PC). I also found a great little app which makes the advert disappear from Word and Excel)! Happy days and all above board!

Another good freebie is PhotoFiltre 7, which among other features has a full menu listing for manipulating / editing layers.

Good to know about it

Google's 'Picasa' photo editor was not mentioned, but for everyday editing, it's a real winner! - Maybe not so much for pro's, but since it was first introduced, MANY features have been added, and MUCH can be done with this simple to use program, which is "On The House", from Google!
Also, Picasa automatically Organizes your photos in chronological order, so there is a running 'History' of your photographic journey, and no matter what editing you do to the photos, Picasa leaves the Originals on the hard drive "As Is".
You can also select from your collection, and 'Share' or E Mail directly from the program.

Snapstouch is free online tool to convert photo to sketch, photo to painting ,photo to B&W etc. This tool adds theses effect with maintaining actual size and that is totally free of cost even you don't need to create account as well to add the effects.
www.snapstouch.com