To quote their website "Inkscape [1] ... uses W3C standard Scalable Vector Graphics (SVG) file format. Supported SVG features include shapes, paths, text, markers, clones, alpha blending, transforms, gradients, patterns, and grouping. Inkscape also supports Creative Commons meta-data, node editing, layers, complex path operations, bitmap tracing, text-on-path, flowed text, direct XML editing, and more. It imports formats such as JPEG, PNG, TIFF, and others and exports PNG as well as multiple vector-based formats."
It's a product in its early stages; the current release is only at V0.45 and doesn't, for example, yet support SVG filter effects, animation, and SVG fonts. It is, however, totally usable. That usability is enhanced by an excellent user interface and the impressive set of tutorials that come with the product that help wean the user away from the world of digital images to the nodes, lines, curves and shapes that form the basis of vector editing. Overall a top product that will only get better. Highly recommended.
From the same stable as PhotoPlus (in the Best Free Digital Editor category) DrawPlus [2] is drawing and graphics software that enables you to create vector graphics, family trees, room layouts and even web animations.This is not the most current version of this software (version 4) however you might want to grab yourself the most current version (version 6) at only $9.99.
[1] Inkscape
Website: http://www.inkscape.org
Author:
Date: 02/18/2008
Version: 0.45.1
Download File size: 22MB
License: GNU GENERAL PUBLIC LICENSE Version 2, June 1991
Operating systems supported: Windows 2000/2003/XP
64 Bit Capable: n/a
Portable version available: no
Other languages supported: yes
[2] DrawPlus
Website: http://www.freeserifsoftware.com/software/DrawPlus/default.asp
Author: Serif Europe Limited
Date: 02/18/2008
Version: 4
Download File size: 19MB
License: Free but requires registration
Operating systems supported: Windows 95/98/Me/NT/2000/XP
64 Bit Capable: n/a
Portable version available: no
Other languages supported: no