Free graphics creation/manipulation/editing software

GNU Image Manipulation Program - G.I.M.P. (free alternative to Photoshop)
http://www.gimp.org/downloads/

Inkscape (free alternative to Illustrator)
http://inkscape.org/download/?lang=en






Livebrush (graphic/design creation)
http://livebrush.com/

Livebrush - Photo Painting from Livebrush on Vimeo.



Image Inc (blend 2 photos together; combining photos)
http://www.cybia.co.uk/imageinc.html




Create panoramic photos (photo stitching)
http://www.dermandar.com/create/




Ascii Generator 2.0 (ASCII art from pictures)
http://sourceforge.net/projects/ascgen2/