My design skills are non-existent, but I often need functional little buttons or badges. Using Photoshop for that sort of thing is like taking a sledgehammer to a nut, so I was extremely happy when I found iconfu.

It appears to be pure Javascript, which is impressive just as a technical feat, but it's also an extremely usable and surprisingly full-featured tool for building tiny icons. It's got undo, nicely anti-aliased primitives and some handy filters. Even better, it's completely free for up to 16×16 images. It's no Photoshop so don't expect to see layers or freehand, but that's part of what I love about it. It takes me back to the paint programs I'd use in the late 80's, and the hours I spent clicking individual pixels to create a massive 320×240 demo background.

The only drawback is that Internet Explorer is not supported, but if doing any web design work I'm sure you'll have a better an alternative browser installed anyway.