Gimp http://www.gimp.org/ (photoshop and gimp are similar, but sometimes one is better at something than the other is).
jhead http://www.sentex.net/~mwandel/jhead/ - I use this to manipulate files, EXIF header information, etc.
VueScan http://www.hamrick.com/vuescan/vuescan.htm - if you are going to scan in images from photos, this is the best software around.
If you are going to produce CDs with pictures on them, you probaby want to read over http://www.cdrfaq.org/
You probably want a copy of cdrecord http://cdrecord.berlios.de/private/cdrecord.html which includes "mikisofs', which you can use to make an ISO image file. You can use whatever software came with your CD burner to burn that image to a disc. You can use Virtual Clone Drive to mount the ISO image file just like it was a CD:
Virtual Clone Drive http://www.elby.ch/fun/software/index.html
Lastly, if you want to make a CD, and put photos on it, I highly recommend the CD have a directory called DCIM, and under there, have directories like "101..." "102..." (you can replace the "..." with anything - any meaningful text). That way, Windows will think it is a digital camera and allow you to run the "picture import wizard", if you want. If you have other files, make a top level directory called "MISC" and put them there. I like to make a PDF that is the jewel case cover, so one can just print it right off the CD.