The following web  photo editing tools are free.  You are able to add fun effects as well as crop, reduce red eye, and resize.  With Graphita you are able to add captions, doodles, and bubbles.  Many allow emailing the edited photo as well as sending the pics to flickr or picassa.

Pixenate

http://pixenate.com/

Graphita

http://www.graphita.com

Phixr

http://www.phixr.com

Cellsea

http://www.cellsea.com/media/index.htm

Picnik

http://www.picnik.com