Expression 3 is the coolest free app I've seen since Art Rage. Oh, Microsoft bought the company? Awesome. Can't wait to see what this team does.

[Scobleizer: Microsoft Geek Blogger]

I also ran across this on Don Park's site recently as well, and finally downloaded it to poke around.  I like what I've seen so far.  If this tool allowed you to save to SVG it would be even more useful- but I'm sure that will come as this product evolves.

UPDATE- A couple of folks have pointed out that this isn't a free application, but rather a free upgrade for current users. Sorry for any confusion.