There are many free image editors available for users who cannot afford to get the powerful Photoshop. PhoXo is a nice freeware image editing tool which comes with lots of features. It supports layers, batch image processing, image masks, filters and more than 50 special effects to add to photos, as well as a variety of useful editing tools for cropping, retouching, color adjustments and more. You can use this tool to do multiple actions like editing, sharpening, batch processing etc.
What makes PhoXo an useful tool is that it comes with tons of features and still under 4MB in size. The simple and powerful layer management available in the tool supports drag and drop operations.
You can download thousands of clipart, frame, texture, stamp, brush style for free from the web for this tool. There are also options for creating text effects like shadow text, gradient text, glass text, scanline text, blur text, water ripple text, and more.
PhoXo with these features comes completely free of cost and also supported on Windows 7.