Just downloaded the newly released second version of Picasa. I must say, this app is sweet, and they've done a really good job with this version. The UI is incredibly sleek.

One cool new thing is the collage creation. Select some photos, hit Create Collage, and out pops something like this:

Collage

Talking about photos, I've been playing some more with Flickr. The tags feature (that everyone seems to be picking up, including Technorati and apparently Google will be announcing something today) is great. You can even subscribe to RSS feeds of pretty much anything (by tag, person, etc...) For example, here is an RSS feed for my cellphone photos.