picnik is one of several free online photo editors. Unlike SplashUP.com, this one does not offer layers, but it does offerer transloading to various free hosts. It has recently starting upgrade nagging.

Please add the option to remove the bottom upsell banner while editing pix. A creative scripter could intercept the transloaded image and feed it to imageshack or tinypic

screen shot
http://image52.webshots.com/652/2/0/98/21412009...

hmmm... one more time
http://good-times.webshots.com/photo/2141200980...