There are also some good video tutorials on YouTube. There's definitely a learning curve. It took me a few tries before I was even a little bit comfortable with it.
I suggest people try out Gimpshop. It's GIMP, but redone to act more like photoshop, as far as where the buttons are and hotkeys and such. http://www.gimpshop.com/
As a former IBM sales employee, (ie relatively comfortable with "computers", or at least selling related equipment), I did not have much fun using Gimp...I have a basic label done which isn't close to what I want, photoshop here I come.
Photoshop Elements will do almost everything you want to do, and it is priced around $60-70 bucks. Elements can also handle many of the same filters as the more expensive full version.
There must be a TORRENTial amount of free software out there for the having!
I tried GIMP a couple of years ago and could not figure it out. I somehow grew accustomed to Corel Photopaint, so that is what I mostly use now. I can stumble my way around Photoshop without help, at least for the basics.
I have been meaning to try the GIMPshop out, since it seemed to be an obvious direction to take, considering the vast number of people used to using photoshop.
As much as I love open source software, I cannot make myself like Gimp. Even Gimpshop is so-so. I have Photoshop, but for quick stuff I just open a blank PowerPoint slide and work on it. You can do a surprising amount of stuff, especially if you have Office 2007. Create your label, select all & group, right-click and save as picture. You can do much the same in OpenOffice.
If you search around on CL or eBay you might pick up an old copy of Microsoft Image Composer. It came bundled with some versions of FrontPage 98 (yeesh! I know, I know...) but don't hold that against it. It was actually a decent image editor and much more intuitive than Gimp. You'll need the installation key, but it predates Windows Genuine Advantage, etc. I still have my copy and I don't let the CD get away for any reason. It's not very large and runs fine on my XP netbook. I don't see why it wouldn't do as well on Vista or Win7.