Wiggly,
My scanner came with a copy of Adobe Photo Deluxe. Looks like it does most of the things you want - for example, you can take out flash red eye. Probably a bit cheaper and a lot less complicated to use than Adobe Photoshop. Works for me! As usual with Adobe, the documentation is p*ss poor - but there is a Dummies Guide to Photo Deluxe (don't know what I'd do without 'em!)which gives some good explanations about the pros and cons of various formats - I found it very useful.
Have fun!
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Feline
(I Sit, I Watch, I Smile)