So, last month, the photo giant introduced Photoshop Express, its free Web-based service for storing, sharing and editing photos, in an effort to compete with established online photo services such as Yahoo’s (YHOO) Flickr, Google’s (GOOG) Picasa Web Albums, or the photo-laden Facebook social-networking service.

Photoshop Express has many of the same features as Flickr and its ilk. It gives you two free gigabytes of photo storage. But Adobe is hoping to make its mark with editing.

Most online photo services offer little or no editing, assuming you’ll do that using software on your computer before you upload your pictures. But Photoshop Express, borrowing from Adobe’s deep knowledge of photo editing, offers the nicest set of Web-based editing tools I have seen. They are sophisticated for a consumer application, yet easy to use. They edge out those in Picnik, a pioneering Web-based photo editor I hailed last year.

These slick editing tools are not only available for use with photos you’ve uploaded from your hard disk. You can also use them to edit pictures stored in your accounts at Facebook, Picasa Web Albums and another big photo-storage service, Photobucket — all without leaving Photoshop Express. You can even move pictures between Photoshop Express and these three services just by dragging and dropping.

Adobe’s new service is available in the U.S. only, at www.photoshop.com/express.

I’ve been testing Photoshop Express and its service overall is pretty good, even though it’s still labeled “beta.” It’s a nice example of the Web 2.0 trend, where programs accessed via a browser can look and feel like applications that live on your computer.

But Photoshop Express is rough around the edges. It can be slow at times, and it’s missing some obvious features, like the ability to easily download publicly shared pictures from other members or to print photos. Adobe says it is working on these things.

Photoshop Express isn’t meant to replicate all the features and power of Photoshop. It’s more like a Web-based version of Photoshop Elements, Adobe’s consumer software package.

I tested Photoshop Express on multiple computers: PCs running Microsoft’s (MSFT) Windows XP and Windows Vista, and Macs running Apple’s (AAPL) Leopard operating system. I used it in all three major Web browsers: Internet Explorer for Windows, Firefox on both Windows and Mac, and Safari, also on both platforms. It worked fine in all of these operating systems and browsers, though it does require Adobe’s free Flash software.

For my tests, I uploaded from my computers dozens of photos, from very large images captured with good digital cameras to smaller shots from cellphones. All were handled perfectly by Photoshop Express. I also opened and edited pictures in Photoshop Express from my accounts on Picasa Web Albums and Facebook. All of this worked well, though uploads of large images can be slow if your Web connection is pokey.

Photoshop Express is a handsome product, presenting your photos on a gray background with controls and features arrayed at the top and bottom, and down the sides, in a logical, clear manner. Your own photos are presented in a section called “My Photos,” and can be organized into albums. Photos that other Photoshop Express users have chosen to publicly share are organized into collections called “Galleries,” which can include multiple albums. You access these community photos by simply clicking on “Browse” or performing a search.

For each album you create, you can choose to share it publicly or to keep it private. Whichever option you choose, you can email friends either a link for viewing the album or a single photo. Your own photos can be downloaded at a variety of resolutions, including original size.

When you view shared galleries or albums, they appear as slide shows. You can select a number of slick effects by which the slides appear, allowing them to zoom and glide into place from various directions.

The editing features really stand out. In addition to standard tools such as auto-correction and red-eye elimination, Photoshop Express lets you touch up areas; adjust exposure, saturation, and lighting; and even make certain colors pop — so grass is greener, for instance. And, in most cases, it shows you small example images illustrating the changes, then previews those changes in the larger main image just by moving your mouse over the example. You can revert to your original at any time.

Unfortunately, there are a number of problems. Photos, especially large ones, can take awhile to appear in the editing module and to snap into focus. Captions sometimes get lost or mixed up when you move photos to other services. You can view shared albums only as slide shows, not as individual photos.

Still, Adobe has made a good start with Photoshop Express, and it’s worth a try if you want better online editing for your pictures.

Email me at mossberg@wsj.com. Find all my columns and videos online, free, at the new All Things Digital Web site, http://walt.allthingsd.com.

Like all other trends in technology, this one, sometimes called “Web 2.0,” is overhyped. It’s been happening quietly for years, but it’s a long way from replacing all the software you use.

Still, the biggest software company of all, Microsoft, has recently launched a major initiative to produce this kind of remote software. Its project, called Windows Live, is hardly unique. Google, Yahoo, America Online and many others are also offering new Web applications. But Microsoft’s Windows Live may be the biggest of these efforts.

Google Earth image of building housing Journal’s Washington bureau, top; the Microsoft image, below.

Why would Microsoft, or its rivals, want to make this switch? Well, theoretically at least, it allows them to write one program that can be used on multiple platforms — say, both Windows and Macintosh computers, or even cellphones. And it may allow them to sell subscriptions to their software, or to sell ads that could run inside the software. It will also make it easier to update programs, and to construct programs that can synchronize data among multiple PCs or users.

Some of this stuff would clearly benefit consumers. You could fire up your favorite program from any Internet-connected device, just as you can log onto Web-based email now from any PC. And you wouldn’t have to download or install updates.

But other features of this new world, like ads in software, may be annoying to many consumers. In the world of Web 2.0, people without fast, costly broadband connections would be able to do less and less with their computers.

To get an early look at this new approach, I’ve been poking around in Windows Live, which is a grab bag of mostly free programs. Some, like Windows Live Messenger and Windows Live Mail, are renamed and revamped parts of the company’s MSN online service. Others, like the OneCare Live security service, are new ideas.

All of these programs are in the testing phase, and this column isn’t intended to be a full review of any of them. But here’s a quick, early look at three components of Windows Live.

Windows Live Local: This is a local search and mapping service, complete with aerial photos of cities and towns. Built on an earlier Microsoft project called Virtual Earth, it’s intended to compete with the local search and mapping features of Google and Yahoo. It’s also a competitor to Google Earth, a satellite mapping service that requires an installed program to use. By contrast, Windows Live Local works entirely from a Web browser, and it runs in both Internet Explorer and Firefox, and on both Windows and Macs.

The most startling feature of Windows Live Local is that it can display real 3D aerial images of buildings and houses in many U.S. cities and suburbs. These pictures don’t merely display the roofs of buildings, as Google’s do, but their sides. The difference is enormous. Instead of puzzling over roof shapes, you can easily identify buildings and get a much better feel for neighborhoods.

In its current form, however, Live Local has limitations. For large swaths of the country, 3D photos, which Microsoft calls “Bird’s Eye” views, aren’t available. In Bird’s Eye mode, panning and zooming are clumsy and limited, street names aren’t overlaid on the images, and there’s no easy way to save them. But it’s still a huge step forward. It’s at local.live.com.

Windows Live Mail: This is a massive upgrade of Microsoft’s popular free Hotmail email service. It is simultaneously much cleaner looking and more sophisticated. There’s now a preview pane to the right of the message list, just as in Outlook. Messages can be dragged into folders. When you right click on something, useful email options appear instead of just browser commands.

The new mail program auto-completes addresses and saves sent messages. There are various new security and editing features. Overall, it works much more like Outlook or Outlook Express, though currently many features don’t work on the Mac or Firefox. It will also offer two gigabytes of free storage. People with current Hotmail addresses will be able to keep them, but new addresses will look like “johndoe@livemail.com.” It will be available at mail.live.com soon.

Windows Live OneCare: This is a complete, managed security service, for Windows only, that will be available by paid subscription. The goal is to keep a computer constantly protected and updated with little or no intervention from the user. It does require locally installed software, but it’s managed remotely by Microsoft, the same way a corporate IT department remotely manages the security of all the computers at a company.

OneCare, which I will review in full later, also has features to keep a computer tuned up and backed up. As of now, it lacks a crucial feature: antispyware capability. But that is planned. It’s at onecare.com.

• Email me at mossberg@wsj.com.