Michael Arrington at TechCrunch reports that Picnik, the online photo-editing site has signed a deal with Flickr to allow Flickr users to do basic photo-editing.

Picnik is amazingly fast at, sharpening, exposure adjustments, white-balance adjustments and other basic photo adjustments. It will access your photos directly from Flickr, Picasa, photobucket and facebook.

Online photo-editing is still lightweight compared to desktop photo-editing but appears to be improving rapidly. Michael Arrington did a online photo-editing overview back in February 2007.