Picnik, another online image editor.

With Picnik you can quickly edit all your online photos from one place. It's the easiest way on the Web to fix underexposed photos, remove red-eye, or apply effects to your photos.

Unlike others, I gave Picnik a shot since I heard some good things about it. A clean, Flash design makes this one very simple and intuitive to use. Plus its fast. Faster than the other all inclusive online image editors I've reviewed, probably because of the use of Flash.

Link:
http://www.picnik.com

Also, check out my online image applications:
http://www.whatsitscolor.com/
http://quickthumbnail.com/