I bought my daughter KidPix 3 sometime ago. (I had an earlier version growing up and just loved it. ) She loves it. She can draw pictures, use stamps, and add music.
When we first got it, she was too small to understand how to work the mouse, so I would draw things for her like flowers and manta rays. Now she can work it herself. She likes the sound effects it has and likes to erase her pictures by blowing them up.
This program is a little buggy. (I noticed that Kidpix 4 is out now, so they may have fixed some of the problems.) Paint brushes and colors don't always change correctly. Also, the box claims you can e-mail your pictures, but you can't really, you have to use their website. It bothers me that you can't save the pictures as jpegs, only KidPix's format. But my daughter doesn't mind, so it's perfect for her.