Good idea to keep the topic open;)
I also use PhotoDraw2 all the time- so easy and quick. I haven't worked out how to use the 3D aspect with Vista/Windows 7 - haven't really needed it- but everything else works fine.
I have to re-size large photos -I use MS Office 2010 (Picture Manager) to make sure they're less than 2500px- or I can use another program like
paint.net to change the file to .bmp
I use
paint.net (good, free program) as well as PhotoDraw2 as it's easy to colour in sections or make sections transparent; I tend to go from one to the other, but PhotoDraw2 is still my first choice for most quick & easy drawing, photo sharpening, cutting out, combining, adding text/watermarks etc.
There seems to be little still on the Internet about, but there's still a good basic tutorial at
http://www.learningace.com/doc/132428/02eb1aaf8a753eb73e8fe94ca818b72f/usingphotodraw