Splashup: Basic Photoshop in the Browser
Splashup, formerly Fauxto, is a powerful editing tool and photo manager. With the features professionals use and novices want, it's easy to use, works in real-time and allows you to edit many images at once. Splashup runs in all browsers, integrates seamlessly with top photo-sharing sites, and even has its own file format so you can save your work in progress. If you don't have Photoshop then Splshup is a great starting point for layered based graphic editing in the browser.