I was already a fan of picasa as a powerful tool to manage and touch-up pictures. Now I have tried Picasa 2 and it is a 100% improvement over Picasa. I would not have thought that possible, but the editing is even easier and more powerful plus they have added new tools to view movies and create web pages from your pictures in about 10 mouse clicks.
Congratulations Google on another big score by the Picasa team.