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Found this great list of free online photo editing sites courtesy of +Creative Kit Center - from there found iPiccy which seems pretty nifty
 
Best FREE Online Photo Editing Website List

Can't find what you need on Creative Kit?
Then try these FREE collection of photo editing websites.
Thanks to +PJ Rosenberg for this amazing list.

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PicMonkey (http://www.picmonkey.com/)

The world's friendliest photo editor got a chance to start again. If you loved Picnik, PicMonkey is back in town and better than ever. It's faster, more powerful, and easier to use.

iPiccy (http://ipiccy.com/)

iPiccy makes your photo awesome with many easy to use photo tools. Edit pictures, apply beautiful photo effects, add text and even paint! Enjoy free photo editing online and show your creativity with iPiccy editor!

FotoFlexer (http://fotoflexer.com/)

FotoFlexer is the world's most advanced online digital photo editor. It performs advanced effects previously only available to professionals using expensive software.

Ribbet (http://www.ribbet.com)

It is an excellent online photo editor based on the Picnik platform, and for a limited time all their premium features are free. Ribbet has thousands of effects, stickers, frames etc and all uploads and edited photos are kept in an online history for registered users. 

BeFunky (http://www.befunky.com/)

BeFunky Photo Effects allow everyday people to easily create photographically rich and artistic results from their digital images without the need for any technical knowledge. These “one-click” photo effect options produce desired results effortlessly and each effect comes with the option to make simple adjustments.

FunPhotoBox (http://funphotobox.com/)

The FunPhotoBox site is a place where you can create funny pictures from your photos. FunPhotoBox is a free photo editing online service. FunPhotoBox allows you to add special effects to your photos.

PicArtia ( http://beta.picartia.com/)

Create photo mosaic Online and Free! A powerful photo collage maker in 3 easy steps. Get your photo montage in less than 2 minutes!

Photo 505 (http://www.photo505.com/)

Huge collection of photo templates, which will keep You busy for quite a while.

Loonapix ( http://www.loonapix.com/)

In a few words – Loonapix is going to beautify your life. A lot more photo templates.

Funny Photo (http://funny.pho.to/)

Even more photo templates – just upload Your images and choose one of funny effects available!

Dumpr ( http://www.dumpr.net/)

While not all of templates are free, still there are enough to choose from.

WriteOnIt (http://www.writeonit.org/)

Here you can easily create your fake pictures, captions and fake magazines (Wired, Playboy, Playgirl, Glamour, Time) and other funny jokes for you and your friends.

MagMyPic ( http://www.magmypic.com/)

There are 30 different magazines to choose from for now. You can select any of them and make an impressive, unique, custom fake magazine with ease and Your own picture – it’s simple as that!

Hollywood Hair Virtual Makeover(http://www.instyle.com/instyle/makeover/)

Try on the hottest celebrity hair and makeup looks!

Hairmixer (http://makeovr.com/hairmixer/ )

Lovely tool and it does exatcly what it says.

BigHugeLabs Flickr (http://bighugelabs.com/)

Have fun with Your photos, a lot of photo editing tools available here, You don’t need any knowledge of professional photo editing programs.

FaceInHole (http://www.faceinhole.com/us/)

With FACEinHOLE you can easily and in a matter of seconds create a totally “new look” for you and your friends. You just have to select a scenario, upload and adjust a photo (or use your webcam) and there you have it; a great FACEinHOLE that you can send to your friends, post in your blog or make available to the world.

Personalized money (http://www.festisite.com/money/)

Create your own personalized money bill with Your own picther with just a click of a mouse button.

Fake Magazine Cover ( http://www.fakemagazinecover.com/)

Here you can personalize magazine covers online (no software applications to install, just use your web browser) by uploading digital photos you have on your computer.

FotoTrix – Image Generator ( http://www.fototrix.com/)

Upload a digital photo to add fun effects and novelty layouts. FotoTrix have over 2,500 templates for your digital photographs! Make it look like you had your photograph taken with a celebrity or add some goofy props to spice up your photos.

JpgFun ( http://jpgfun.com/)

Jpgfun is an easy-to-use free online service to edit Your photos! You can improve Your photo with different interesting and funny effects or put Your photo on a magazine cover. Mention that it is ABSOLUTELY FREE and easy as one, two, three! One more photo template resource.

Photovisi (http://www.photovisi.com/)

Choose from 18 photo templates and create collages from Your photos as wallpapers and more.

PixiSnap (http://www.pixisnap.com/ )

Pixisnap allows you to create your own pixisnap photos in 3 easy steps: choose a mosaic type, upload your photo and customize your mosaic art.

Pizap (http://www.pizap.com/pizap.php?width=1920 )

Pizap is a fun free photo editor that lets people easily create wacky images with their digital pictures. PiZap was created as a tool primarily for social networking users who want to post their images to their favorite social networking sites

PhotoFunia ( http://photofunia.com/)

PhotoFunia is an online photo editing tool that gives you a fun filled experience. You upload any photo and just wait to see the magic. Our proprietary technology automatically identifies the face in the photo and let’s you add cool photo effects and create funny face photo montages.

Pixlr ( http://pixlr.com/)

Pixlr offers Pixlr express for basic editing like cropping and re-sizing, adjustments, and photo effects. The full version includes a lot more functionality that allows you to create an item from scratch or edit an existing photo. The full version works similar to Photoshop or GIMP with a lot of different tools that can be used.

Pixenate (http://pixenate.com/)

Get started with Pixenate by uploading a photo, entering a URL, or get one from your favorite photo sharing website. It includes basic editing features like cropping and re-sizing, brightness adjustments, and drawing lines on photos.

Dr. Pic ( http://www.drpic.com/)

Dr. Pic allows you to get started by uploading an image or entering a URL. It includes basic functionality like cropping and re-sizing, brightness and contrast adjustments, sharpen, adding text, and a little more.

Lunapic (http://www.lunapic.com/editor/)

Lunapic is a feature-rich online image editor. You can work with existing photos or create new images. There are tons of effects to choose from, and many adjustments that can be made, plus drawing tools, anitmation, and more.

Phixr (http://www.phixr.com/photo/userindex)

You can start using Phixr by uploading a photo from your computer or by entering the URL of an image, or pull it from a photo sharing site. You can do basic things like crop or re-size, or use the other options like red eye removal, camera and lense effects, blur, and more.

FotoFlexer (http://fotoflexer.com/)

FotoFlexer is the world's most advanced online digital photo editor. It performs advanced effects previously only available to professionals using expensive software

Pho.to ( http://editor.pho.to/)

With Pho.to you will upload a photo from your computer or enter a URL for the photo. It offers options like cropping and re-sizing, color enhancement, and several artistic effects. You can also automatically create a caricature from a photo.

Pixer.us ( http://pixer.us/)

Pixer.us allows you to upload a photo from your computer, and perform basic editing and touch ups. You can crop and re-size, plus adjust things like brightness and contrast, saturation, sharpness and more.

FreeOnlinePhotoEditor (http://freeonlinephotoeditor.com/)

Edit or adapt your Photo or Image Online in your browser for free. Upload your picture or photo or use an URL of an image on the Internet.
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