This is a nice step up from Paint that comes with Windows. It's not the best photo software out there, but it's great for a free alternative.
"Paint.NET is a photo and image editing tool designed for computers running Microsoft Windows XP or Windows 2000. It serves the digital imaging community as a free alternative to the standard paint application included with Windows. It brings powerful features to the desktop, a myriad of special effects, plug-in extensibility, and layer manipulation. It enhances the image editing experience for tablet owners with Windows XP Tablet Ink support. Digital photographers and artists can enhance their images with features and effects such as levels adjustment, cross-layer cloning, anti-aliased tools, motion blur, and red eye removal."