The following are programs that I really like, ones that I often use in my own work. I've included links to the manufactures of each one. (I've had great experiences with them, but of course I can't take responsibility for anything you put on your machine.)
Unless otherwise noted, all the software listed below is free and is available for both Macs and Windows computers.
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Art Rage 2
(Painting and drawing)
I get asked all the time to recommend a good, fun art program for kids or for people who aren't ready to invest hundreds of dollars in Adobe Photoshop or Corel Painter. Until I came across Ambient Design's Art Rage 2, I didn't have any really good suggestions.

A fully functional version of Art Rage 2 is completely free to download and play with, and is available for both Mac and Windows. (If you want to spring for the full version with all the bells and whistles it will only set you back $19.95) It's great fun, and very easy to learn. Plus, it does a nice job of simulating all sorts of natural media, like wet paint brushes and crumbly chalk.
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Google Sketchup
(3-D Modeling)
For years, I've been using 3-D software to help me work out difficult compositions in my books. I've used many different programs, and by and large they've been expensive and a chore to learn.
SketchUp, now owned by Google, is different. The price is right (free) and the learning curve isn't bad at all. Spend a couple minutes with the online tutorials and you'll be up and running. It's an intuitive and powerful program, and it's tons of fun.
If you decide to give Sketchup a try, be sure to check out the online video tutorials. They're fantastic.
There are also some great videos by Aidan Chopra, author of "Google Sketchup for Dummies" here:
http://www.youtube.com/aidanchopra
Sketchup also comes in an advanced version (Sketchup Pro) :
http://www.sketchup.com/
The pro version isn't free, but educators can get a free license here:
http://www.sketchup.com/?section=education
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Seamonkey
(Web design)
If you're interested in getting your hands dirty creating basic web sites, but aren't ready to invest in something like Dreamweaver, Seamonkey provides a basic, no-frills, web design system.
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Audacity
(Sound editing and special effects)

Audacity is a free, easy-to-use audio editor and recorder for Windows, Mac OS X, GNU/Linux, and other operating systems. You can use Audacity to:
Record live audio
Convert tapes and records into digital recordings or CDs
Edit Ogg Vorbis, MP3, and WAV sound files
Cut, copy, splice, and mix sounds together.
Change the speed or pitch of a recording.