Tbh it's worth spending a bit on something like Photoshop elements 9. If funds are tight it might seem expensive but for what it does it's not! Also you'll be using it and learning stuff on it for years to come!
Apart from your initial camera purchase good processing software is the 2nd most essential purchase.
Another vote for Gimp 2. Downloaded it yesterday and have been messing with it ever since. It seems pretty intuitive, and highly specced for a freebie.
I too would go with PS, not only are you learning with, what is known as the best photo editing software, if you get stuck in any way there's always plenty of advice online.
It's opensource so lots of plugins are being or have been developed for it, 100's of tutorials etc and if you aren't used to photoshop already you should pick it up very quickly. It is the best free editing software out there, and better than photoshop elements imho.
Do you get the Canon DPP software with the 1000D? If so, that would be my first port of call. Failing that, Elements is cheap and worth a go, for more advanced editing if that is what you want to do. For light editing and photo management Google Picassa is free, but you may find it limiting.
I have pse9 and have been buying the digital photo magazine. The dvds which come with it each month have video tutorials which are excellent and well worth the £5 a month.
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