I used:
picnik.com
I did pay for the 'premium' fonts and graphics and do not regret it for a minute. I use it all time.
You can put frames around your pictures, add text, make collages.
I save my picture to a folder I have set up as 'graphics'. When I want to include here in DK, I click on the camera icon, find the picture and save.
After I finish with picnik.com, if I want to add flashing or falling graphics I use my saved picture from
picnik.com and go to
blingee.com
These you have to copy and save the 'embed code'. I save them to a Word Document - don't forget to write down what picture the code is for!. When you want to add it, I go to my word document, copy the code and paste into the discussion.