Gimp.org is freeware that is similar to Photoshop. Quite a few folks here use it, so there is help if you need it, and there are plenty of tutorials on Youtube on how to use it. If you want to try something for free, its a good program.
There's a link by Wormil in this thread... the program handles some photo editing. Not sure on the design capabilities, but maybe this will help you out, too. It's also freeware
How can I change a JPEG from a higher megapixel to a lower one? Thx. =)
I don't know anything about Photoshop Album, if that is different from regular Photoshop or Photoshop elements, so I can't help you there. But if it turns out PS Album isn't what you need, those other programs will help you out.
Best wishes.