Image Manipulation

GIMP

Description
The GIMP is an open source GNU Image Manipulation Program. Most fans (and there are a lot of them!) will tell you that it is just like Adobe's Photoshop. They are right (well nearly anyway).
It supports layers, transparency and offers a CMYK plugin. Image manipulation is not easy, so you should take the time to learn this (or any other image manipulation) software before deciding if it's good or bad.

Rating: 5/5 

Paint.net

Description
This is also an open source image manipulation program and is equally excellent!

Rating: 5/5

XnView

Description
Photo library software with basic image manipulation tools, like red eye reduction, image resizing, etc. This is what I use to manage my extensive photo collection.
It also offers website gallery creation from a list of photos: excellent option!

Rating: 5/5 

IrfanView

Description
Very similar to XnView, but since I discovered the latter, I use that exclusively. Allthough, I'm sure it offers the same functionallity, IrfanView's user interface, just isn't as good as XnView's.

Rating: 4/5 

JAlbum

Description
JAlbum is the perfect website picture gallery creation tool! Simple to use, lots of features, lots of templates, open source... fantastic program!

Rating: 5/5