for freeware gimp is all i hear about (or heck, even serious photoshoppers use it when they’re away from their computer since gimp is easily a portable app [portableapps.com])
gimp is definitely the best thing out there for freeware;
software i’ve used was first paint (back.. when photo software like wasn’t even around lol), then Corel 7 back like 5 or 6 years ago, then Paint Shop Pro 7, then 8, now 9 (but i only use PSP for like graphics paint rendering), and now I use photoshop CS3
seriously though, a forum I visit, if people dont want to pay, i’ve heard plenty of good things about gimp, and seen some stunning stuff from it.
I don’t know if it does animation gifs maybe, dunno