Personally I use The Gimp , which is a free Photoshop clone, but the learning curve can be quite high so don't jump into it unless you really wanna get your hands dirty in it.

I'll bet that Sparkey has a copy of Photodeluxe that he'll give you for cheap.

There is a trimmed down version of Adobe Photoshop called Photoshop Elements that has gotten rave reviews lately. Very nice interface, very powerful program. I've also heard that Costco has it for a good price with a rebate, but I'm not 100% certain about that. If I were to choose a simple photo editing package right now it would be Elements.