Ok, maybe not photoshop, but, I did come across a site that has most of the basic functionality, and it is free. Pixlr (www.pixlr.com) is an online flash photo editor that works completely in the browser. There are a few things I noticed missing such as a text tool and transform tool, but the creaters blog states: “We are constantly developing the application to be more than it is right now. We will release updates as soon as they are ready, so if it doesn’t has a feature right now it will probably be here soon.”. The site loaded very fast in Firefox 3 and the layout is refreshingly simple. This is still in beta so hopefully it will only continue to get more and more robust. Of course there is nothing I could find regarding whether or not he plans to keep the product free after beta, so that could also change.
I will still keep photoshop on my computer, but a free online photo editor that can be used on any OS from any location is definitely worthy of a bookmark.