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Picasa is a free download from Google. It will store your photos and has several more options to edit like Straighten, and Retouch. It also has links to Picnik which has more editing choices.

Photoshop Express

Sign up for a free account and get 2 Gig of free storage.

Splashup

Multiple photo editing, lots of professional tools.

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iPiccy

loads of photo effects

Befunky has a wide range of editing and special effects tool

PicMonkey has a great range of editing and special effects, great touch up tools like smoothing, teeth whitening etc.

Editing Photos in Windows 7


Editing Photos in Windows XP


Editing Photos in iPhoto 9