Today, Google started integrating some features from Picnik (acquired earlier this year) into Picasa Web Albums. The features allow users to edit photos.
Picasa Web Albums users using English, Chinese (Simplified and Traditional), French, German, Indonesian, Italian, Japanese, Korean, Norwegian, Portuguese, Russian, Spanish, Swedish, and Vietnamese versions will be able to use Picnik photo editing.
To do so, simply click "edit in Picnik" from the edit drop-down menu or the new Picnik icon.
"Then, Picnik away by applying an effect, adding a sticker, or exploring your own creative path with advanced tools," Google says. "When you are done editing your photo, save back to your album by either replacing the existing image or making a new copy."
Picnik as a standalone service is still available (including a premium version in "3 tasty flavors").