Google today is launching a one-two combo of Picasa 3.0 (beta), the next generation of its free photo-editing software, alongside a major technology upgrade to its free online photo-sharing site, Picasa Web Albums. Picasa Web Albums now helps users automatically sort and share their online photos based on who's in each picture. Picasa 3.0 offers a slew of new features including an automatic watermark option when uploading, new retouching brush to wipe out scratches and blemishes, a slideshow movie maker with one-click YouTube upload, automatic red-eye removal, smart auto-cropping, and a new fast-launching photo viewer for Windows.

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