clipped from: www.techsupportalert.com   
Basic Editors

LightBox Image Editor is an excellent little utility that I fell in love with after just a couple of minutes of using it.

LightBox Screen Shot

Photo! Editor is a basic photo correction utility with a few professional quality tools.

Photo! Editor Screen Shot

 Mid-Level Editors

PhotoFiltre is a nice basic to mid-level editor with a good feature set.

PhotoFiltre Screen Shot

Paint.Net makes a very good mid-level photo retouching choice. 

Paint.Net Screen Shot

Artweaver - If you don't want the .NET Framework, or simply would like another option other than Paint.Net you should have a look at this.

Artweaver Screen Shot

Advanced Editors

GIMP is currently the only freeware package I am aware of that can be called an advanced image editor.

If a more Photoshop style environment is desired two choices are available;  GimPhoto and GimpShop 

GIMP Screen Shot

In A Class By Itself

Photoscape -This is really a different class product than the editors above in that it does things that are beyond the focus of the average editor, and is more of an image suite. 

Photoscape Screen Shot

You might also want to look at the Best Free Web-Based Image Editor