Sony Ericsson Image Editor is a free program that allows you to crop, zoom, rotate, adjust color, contrast and brightness settings for existing images in Bitmap, GIF, JPEG, PCS, or TIF format. After editing, the finished images can be downloaded straight to the phone where they can be used as background pictures.
The program is far from being a full-fledged graphics editor, and offers only basic image manipulation. Its value comes from being easy to use for users who have no experience with graphics manipulation, having the capability of downloading the image into the phone with the push of a button, and of course being free.
There used to be two other free programs for image work from Ericsson called MyPictures, and MMS Home Studio, but at the time of this writing, they were no longer available on any official Ericsson websites.