It is with sadness that I report this news. Picnik.com is closing in April. I exclusively use Picnik for all my photo editing needs, and it's the absolute best online photo editing shop that can be used for free. There was an option to sign up for a year for extra editing options, but the free was so good that I never found the need to pay. As of right now and until their closing in April, Picnik is allowing people to use all the upgrades for free. You should take advantage of this opportunity and edit as many pics as you can. Here's an example of one of my recent edits.
The options are unlimited and you can create so many cool things with Picnik.
I am sad to see the wonderful site go...