When trying to find a better file manager for the FCK Editor, I ran across this plugin.  This plugin provides a file manager for images as well as a pretty robust interface for editing the images using PHP's GD Library.

If you need to edit images in place, then you should definitly install this plugin.  Installation was extreamly simple.  Mostly consisted of copying over a directory, registering the plugin in the FCK Editor configuration file, and adding the icon to the toolbar.