Cool, Google has released Picasa 2 for free. Sounds like lots of improvements, but check it out yourself, grab it from Picasa.com.
A quick tour of the new software shows support for RAW formats, some nifty effects that are so easy to apply through here that would require a bit more PS knowledge than I have (soft focus, BW color focus, and others along with the standard sepia, black and white type effects), easy making of collages and some other creations, along with the really sexy way that picasa has for doing their organization.