Looks like a lot like Photoshop but it’s online, and it’s free! Introducing Pixlr Photo Editor.

I'm quite genuinely blown away by how well this works so I wanted take a couple of moments to share this one with you as I suspect it might come in handy. >> Access Pixlr Photo Editor here << It's possible I'm one of the last to hear about this fantastic little online utility so apologies in advance if you're already familiar with it, but as I produce most of the banners, HTML mailers, brochures and so on for us here at Zen, and as a budding (but quite poor!) amateur photographer, it's one that really appealed to me.