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The launch of Picnik a couple of days ago brought us yet another online photo editing tool. Like Fauxto, Picnik uses Flash, whereas most of the earlier editing tools all use Ajax for in-browser editing. Since all computers come with basic software that rotates, resizes and crops photos, there needs to be a compelling reason to use an online service. Uploading a photo to such a service, editing it and then downloading it back to your hard drive too high of a cost. To compensate for this, most services allow you to transfer the edited photos directly to Flickr, Webshots or other online photo services, saving users the trouble of making round trips uploading and downloading. Most of these online services also offer editing tools that go beyond simple rotation, resizing and cropping and start to creep into Photoshop territory. Here’s a few of the better ones, along with our most recent testing notes:

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