If you just need the basics -- cropping, fixing red-eye, adjusting contrast, and adding special effects like sepia or soft focus, reviews say you don't need $80 photo-editing software. Google's Picasa is really more of a photo organizer, but it does include some easy-to-use editing tools. Since it's compatible with Windows 98, Me and 2000 in addition to Windows XP, it's also a good choice for older or less powerful computers.
http://www.consumersearch.com/www/software/photo-editing-software/index.html