Related post: 12 Sites Where You Can Get Fabulous Free Photos I've listed some of the most popular (and easiest to use) programs below. As far as image manipulation is concerned, the sky is the limit. Features range from simple editing tools (rotation, special effects, text insertion) to 3D design and animation. There are dozens of graphic programs that don't cost a penny and provide high quality graphics.
If you have a flair for design, and don't have a lot of cash to spare for a professional service, you can make your own book cover for free.