Cnet has an article comparing 15 online photo editors.  The best part is most of them are free.

The list includes:

• Flauntr
• Fotoflexer
• Lunapic
• Phixr
• Phoenix
• Photoshop.com
• Picnik
• Picture2Life
• Pixenate
• Pixer.us
• Pixlr
• Snipshot
• Splashup