New Media - Picnik

Picnik is Photo editing made fun. Picnik makes your photos fabulous with easy to use yet powerful editing tools. Tweak to your heart’s content, then get creative with oodles of effects, fonts, shapes, and frames.

There are two account options.
Free: Dozens and dozens of fonts, shapes, frames, all the effects and the touch-up tools are yours. Plus, all the Edit tools, the ability to undo everything you've ever done to your picture, and it remembers the history of the past five pictures you worked on!
Premium: You get ALL the effects, frames, fonts, shapes, plus NEW advanced editing tools Curves and Levels, which have all the power found in expensive software packages but with one-click defaults and the added shine that all things Picnik have. You also get Priority Help Support, new feature previews, professional FontShop fonts and other exclusive content, the ability to access all your favorite photo sites at the same time to use Picnik to transfer photos between them, unlimited Photo History, and a completely ad-free experience.




I found that Picnik to be the best free online photo editor because not only does it have the simple task for photo editing (exposure, crop, color, sharpen) it also boost several other options to allow several effects like that of Photoshop's filters, can add text, choose to add several shapes, allows for touch up tools such as whiten teeth and blemish removal, and add instant frames when your all done.

You also get to load images from several online image libraries such as Flickr, Photobucket, Myspace, and Facebook plus others.