A. Trying Picnik
This informaiton was in the March 17,2008 issue of Time magazine, page 56. They had an article on free software. They mentioned "Picnik" ( Picnik.com ) as being a substitute for Adobe Photoshop Elements.
B. Testing Picnik:
I tried it out on my Macintosh. It seems to work.
1. I uploaded a photo from my hard drive to Picnik -- see Image 1 below .

2. I cropped the photo -- see Image 2 below.

3. I resized the photo -- see Image 3 below.

4. I saved the photo from Picnik back to my hard drive, at JPEG compression Quality of 6 -- see Image 4 below.

You can do MORE operations. I just tried the most common ones that I normally do with Photoshop elements -- crop, resize, and save at "reduced quality" -- all with the purpose of reducing the file file.
Time Magazine says the following: "If simplicity is genius, then Picnik.com is the Einstein of photo-editing programs. Just upload a picture from your computer, then click to crop, rotate or add special effects. You don't even have to create an account to use this ad-supported site.
C. Ingrams's Comments:
Personally I'd still rather use my Photoshop Elements, since it's a bit faster. ((In Picnik there's a slight "wait" while you upload a photo from your hard drive to Picnik.)) But Picnik had the advantages of: