iPhoto allows you to make all of the edits you listed above. I think Photoshop is the best tool, but if you are not partial to Photoshop, I can agree with the others that Picasa is a good program as well.
1) if you're copying another site (or using a template), your site will lack something in originality, which usually leads to a site failure.
2) I'd custom-build it, but then again, I also have a 11-year code base of custom code that I can draw from which most people don't.
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