We were all so sad to hear the Picnik was closing down... but now it the time to celebrate! PicMonkey is here to save the day! Run by ex-picnik-ers this site is just want we need. They are still working on some features (like collages) but it is free to use!!
Just edited this picture and LOVE it!PicMonkey and try it for yourself!
*** I am not getting paid for this... I just thought I'd pass on the good news!***