Today I got a email from the folk at PicMonkey which turns out to be a picnik replacement. They had mailed me as an API user of picnik to let me know they have a similar API in the works. I gave the app a quick try and it does a very similar job to picnik. Great news. It made me update flash so I guess it needs a recent version. I look forward to seeing the API and putting it into the flickr CC search toy.
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