Freeware Programs: xiberpix
Download Sqirlz Morph 1.3

Sqirlz Morph 1.3  Morph two, three or more images together. Try morphing all the family's faces into one unique (or gruesome) movie! Save your animation as a Flash movie, AVI video clip, animated GIF, or bitmap/jpeg files.

Download Sqirlz Lite 1.1f

Sqirlz Lite 1.1f  Bend, distort, and loop part of an image by drawingoutlines to define shapes. The process can be animated to give complex and flowing motion effects.