I am very proud to announce that Snapzilla now features image editing using the fantastic Picnik image editing tools. Users can now edit both the original image or a copy to retouch and enhance their Snapzilla images.
The edit options are on the picture detail page:
Choosing either the "edit original image" or "replace image" options will open the image for editing in the Picnik interface:

After you are finished editing, use the Save Image to Snapzilla button to save the image back to the site. If you change your mind, the Back to Snapzilla button in the upper right corner will take you back without making any changes.
Picnik offers extensive options for both retouching and also editing your images, including cropping, brightness/contrast adjustment, frames, filters and more. If you are a premium Picnik member, you have full access to all the editing features for your Snapzilla images. You do not have to be registered with Picnik to use the editing tools.
Through the Picnik interface, you can also send your edited image to additional sites, including Flickr,Twitter, Facebook, MySpace, Picasa Web Albums, and Photobucket.
For more information about Picnik, see their site at
Picnik - edit photos the easy way, online in your browser.
Note: to use the photo editing features, you must have Flash installed.
Thank you to everyone who helped to test out the feature during development - their feedback resulted in the addition of editing a copy of the image.