I've found two websites that I really enjoy working with, one is Picnik.com which allows you to edit photos online, as well as pull photos from your flickr, facebook, photobucket, etc. accounts. It has some tools for creating photo collages and such, it's what I used to create the collage above.
The other is Weebly.com which is a website building site. Now, I have used things like Tripod or Geocities in the past and never really been happy with the limitations (or all the ads that end up on your site,) but so far I'm enjoying using this one. I'm no HTML genius, but having the option to add custom bits of HTML here and there on the site are really nice. They have an option to upgrade, but so far I've been content with the free version. (And aside from a "get your own Weebly Page" button at the bottom of my site, there's no advertising on it.)
We are a very busy family, and I like the portability that being able to edit photos and websites online provides. (We don't have a laptop, but I have high hopes of getting a small netbook within the next few weeks)