In my personal opinion...there is nothing...in Windows
Vista, Windows 7 or any other Windows or anywhere
else that compares with MS Digital Image Suite.
The MS Picture It!, MS Digital Image line of image
editing software was the best of the best and I am still
sad and disappointed that MS saw fit to discontinue it.
Windows Live Photo Gallery was advertised as a sort
of replacement for MS Digital Image Suite...but all I can
say is...Yeah! Right....
However...it does provide a basic set of editing tools:
Windows Live Photo Gallery - How Do I Edit Photos
http://windows.microsoft.com/en-US/windows-live/photo-gallery-edit-photos-faq
And...Windows 7 Paint is certainly a huge step up from
the old version of MS Paint.
Windows 7 - Getting Started With Paint - Tutorial
http://windows.microsoft.com/en-us/windows7/Getting-started-with-Paint
Windows 7 - Using Paint
http://windows.microsoft.com/en-us/windows7/Using-Paint
For ease of use, intuitive design, and a great toolset...
I haven't found anything equal to DIS.
That said... the following programs may worth a try.
(some free...some retail)
Paint.NET (free)
GIMP (free)
Serif PhotoPlus Starter Edition (free)
http://www.serif.com/free-photo-editing-software/
Serif PhotoPlus X5 (retail)
http://www.serif.com/photoplus/
Corel PaintShop Pro X4 (retail)
Adobe Photoshop Elements 10 (retail)
http://www.adobe.com/products/photoshop-elements.html
More at the following link:
2012 Compare Best Photo Editing Software