>Hello, here are a list of programs I know will do this effect for you.
>
>PhotoImpact by ULead (http://www.ulead.com)
>Photoshop by Adobe (http://www.adobe.com)
>Paint Shop Pro by Jasc Software (http://www.jasc.com)
>
>I personally use Photoshop 6.0, however the pricetag of $600 may be too steap, as this is a professional graphics tool. All of the above programs will do this and more, with Photoshop doing the most.
>
>I do know Photoshop now has a lite version for I think $99, which does what you need and more, I think this is what I'd recommend the most.
>
>Hope this helps,
>Bryan Smith

I vote for PaintShop PRO :-)

The price tag was 1/5 of PhotoShop and It contain a real good set of tools (including layers, mask and multiple undo) to almost any image editing and creation you want to do.
And it can make screenshot and come with an animation program.

:-)