FotoTagger is a free tool for annotating JPEG images.
Place on an image location-specific easy-to-hide notes that point to people or other elements. Search across images by textual annotations. Upload annotated pictures to Flickr with all annotations preserved and converted to editable Flickr notes. Download images from Flickr with Flickr notes transformed to editable FotoTagger annotation. Publish annotated images to Blogger.com and LiveJournal.