If you want more than XP’s basic in-built image handling, Microsoft wants you to use Digital Image 2006. There are two modules for management and editing. The Library takes care of the former and, like Google Picasa, offers a clean view of all imported images in folders. You can view all images automatically, grouped into the years, months and days on which they were taken (why no other package offers this is a mystery), and add ratings, captions and flags. For finer control, the hierarchical label-based tagging is second only to Photoshop Elements. We’d have preferred a more powerful image downloader and ad hoc image handling via albums or trays, but the Library is clean, simple and effective.

You can only edit photos in the editor application. Annoyingly, there’s no work­space for quickly making the most common enhancements. Instead, the Common Tasks Pane has a range of options, from initial automatic fixes through to final framing. It isn’t very efficient and the global-correction power on offer is disappointing. The range of retouching brushes is better and, with tools for handling selections, text and shapes and a simple stacking system, you can create basic compositions. Other creative options look limited at first, but the catch-all Filters command provides access to some impressive artistic brush-based effects.

For sharing, you can print collages, cards and labels. A wizard and template-based dialog handles multiple prints, and you can email images directly. You can do the same from the Library, where you can also copy images to CD/DVD. Best of all is Photo Story, in which you can create a slideshow, with control over titles, transitions, zooms, pans, narration and background music – Digital Image will even create a soundtrack for you. The results can be output to WMV or VCD. After this, it’s disappointing that there’s no web output or upload ability, but you can sync flagged images and photo stories to Windows Media Player-compatible mobile devices.

Microsoft Digital Image is a story of two halves: the Library is simple, attractive, efficient and surprisingly powerful; the Editor isn’t.