Free Resources

Image Editing

The (GIMP) Gnu Image Manipulation Program is a free, open source image editing program and can be used as an alternative to the popular Adobe Photoshop

Inkscape is another free open source vector editing software similar to Adobe Illustrator.

Photo Sharing + Hosting

There are many great free image hosting and photo hosting servies out there such as: Flickr, Zooomr, Bubbleshare, Photobucket, 23.
Try it out and see which one suits you the best!