Xara Photo and Graphic Designer (the package formerly known as Xara Xtreme) is a one-stop graphics package with the power to satisfy all your creative needs. Photo editing? An excellent core set of features caters for all the most common requirements (crop, resize, fix red-eye, sharpen, fix perspective issues and so on). And if you need more, the program supports Photoshop plugins so can be extended just as much as you like (and there are 46 bundled filters to help you get started).
Illustration? The QuickShape tools allow you to draw preset shapes in seconds. There are plenty of other vector and line drawing tools on offer. 3D extrusion means you can drag any shape to create a properly lit and rendered 3D version, and it's just as easy to apply transparency, feathering, blends, shadows, bevels and more.