GIMP
It's freeware, and pretty damn good for being free
It doesn't have all the perks of more expensive photoshops (like more render options, filters, etc.), but it certainly gets the job done, especially for 128x128 textures.
Things get a little more tricky with 512x512, but I don't have to worry about them

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I honestly don't know if these hands are going to work, going to go test them out now
Last edited by Sarutobi; Feb 27, 2011 at 05:26 AM.
Reason: <24 hour edit/bump