Software: Picasa 3 (Free Photo Editing/Management Application)

I have used Picasa for managing my photos for years. Its one of the best free photo editing and media management applications available (in my opinion).

The application has gotten better with several new enhancement that Google has added in this release. Below is a brief summary of changes in the new version of Picasa 3:

• Improved automatic sync between your PC and the Picasa Web Albums site.
  
• Improved photo collage tool
• New editing tools include a : retouching, text, and smart cropping tool.
• A new movie making tool that allows you to create video slide shows from your photos, videos, and music. The tool also allows direct upload of your videos to Picasa Web Albums or YouTube.
• One of my favorite features is the new photo viewer for browsing photo on your hard drive.

For more information about the new features, check out this article.