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Paint.net has got to be one of the best freeware programs I have seen to battle MS paint.  Not only is it free, its also open source!  It has a bunch of awesome features that put somewhere between MS paint and Photoshop.

Features include...

• layers
• layer effects
• dither brushes
• better palette control
• image color adjustments
• and much much more.

Given it's written in .net, I wonder how hard it would be to make a canvas-networking plugin?  the possibilities are endless!  Definitely give this program a try.

-Dan