Photoshop Elements is my vote. It isn't the absolute easiest out there, but it has the most power and best results:- Photo retouching; it has the healing brush and other retouching tools of Photoshop, best available- Drawing and painting; it has the best painting tools and options, and allows the connection of a drawing tablet if desired- Upgradability; should you ever decide you want to do more serious work it has a path to upgrade to Photoshop CS2, basically the only serious tool for image processing available.Other very capable and inexpensive options exist (GIMP for example), and there are some very interesting new programs (Apple's Aperature is very exciting if expensive) but they all have one serious flaw or another for those like myself who have to do a little bit of everything.