Instructables
Picture of How to edit your pictures using Picnik
Go to www.picnik.com. The site will show up like this. Press "Get started now!"

Step 1: Upload a photo

Picture of Upload a photo
There should be a button that says "Upload a photo". Click that button.

(It also greets you by saying "Hi, Guest! Welcome to Picnik!" And underneath that, it says "Picnik gets even better if you register for free." To create an account, click "register for free".)

Step 2: After uploading, start editing!

Picture of After uploading, start editing!
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After your picture has uploaded, it should show up in a window with little tabs underneath a bigger tab that says "Edit". You may click any of the smaller tabs, such as Auto-Fix, Rotate, Crop, etc.

The second picture included in this step is of me choosing to crop my picture.

Step 3: More fun editing

Picture of More fun editing
After done editing, click the tab next to "Edit" that says "Create". You should end up on the tab "Effects". In the scroll-window underneath, you may choose any effect to your picture. All of these are fun.

(For the effects that say "Premium" on the side, those are only if you choose to pay for an premium membership when you create an account.)

Click any of the tabs next to "Effects", such as Stickers or Text.

(With my picture, I chose to do CinemaScope in "Effects" and a heart sticker in "Stickers".)

Step 4: Save and Share

Picture of Save and Share
After you have finished editing and adding to your picture, click the next big tab next to "Create" that says "Save and Share". Enter your file name as how you would like to save it (mines says ForLifeandArtinstructable). Then press the button on the bottom of the page that says "Save Photo".

Step 5: The end.

Picture of The end.
After you have saved your photo, the page in the photo should pop up. If you wish to edit another photo OR stop editing photos, click "Close photo" and it should take you back to the home page. If you wish to edit the picture that you had just saved, press "Continue Editing". It will take you back to the page under the "Edit" tab.

Congratulations!
 
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I think the idea of online photo is cool and useful for small pics like SN profile pics or wutever.
normally i prefer to work offline with MAGIX Xtreme Photo&Grafic Designer http://www.magix.com/us/xtreme-photo-graphic-designer/ which is pretty cool (i can recommend ).

anyways i like the idea of picnic and will check it out..