For software, I use the GIMP. It's free, it's powerful, it's always being improved. The learning curve is a bit steep, but many of the tutorials posted to the various digital scrapbooking sites are translatable and once you understand the program, the sky's the limit.
I've also signed up for both of the free newsletters at ScrapGirls
, and I have an account at Divine Digital
(also free). The free daily downloads at Divine Digital are amazing and if you collect them every day, by the end of the month you'll have two outstanding collections. The paper for your card, for example, is one from there. The stamp-like frame is from Raspberry Road Designs
The articles in the ScrapGirls newsletters taught me a lot. And I've spent a lot of time looking at people's scrapped pages, especially those with freebies, such as the ones listed on CraftCrave
If you are interested in learning the GIMP, let me know and I'll send you links to the tutorial repositories I've found.