Picasa from Google gets quite a good review by many people. You can also pick up earlier versions of PaintShopPro for peanutes, that will do alot of the nuts and bolts tasks that you'll need.
Unfortunately, there isn't anything out there thats just as good as Photoshop that's free....Thats why it's £600, and people buy it.
As an aside, I've removed your comment advocating piracy as it breaches the Forum Rules.
I'll also put this thread in the correct forum for you.
Go to a big branch of tescos [an Extra that sells electricals, etc] and buy their Photo Restyle software for the pocket money sum of £9.97 - its basically photoshop 7 ish, very similar in look, feel and usage and a fraction of the cost.
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