A commercial alternative to Photoshop that I like is Paint Shop Pro, which you can pick up for around $80. The same people also make Animation Shop Pro, which you can use for creating and editing actual animations.
If you want free stuff, the GIMP is your best bet, along with Windows Movie Maker if you're a Windows XP user.
Truth be told, though, there's a reason why Adobe's software costs as much as it does: it's simply the best out there, and by a landslide.
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