Tux Paint, a customizable, open-source paint program for kids: http://www.tuxpaint.org/download/windows/
All VicMan software is now free, which you probably already know :) http://www.vicman.net/
Power Pro, to let you configure Windows 95/98/NT/2000/XP the way you want: http://powerpro.webeddie.com/
Multi-monitor taskbar for XP: http://www.mediachance.com/free/multimon.htm
Musik Cube, a very fast program based on an embedded SQL database engine known as sqlite. "Dynamic playlists" allow fully automatic, randomized playback of songs based on your observed listening habits. The more you listen, the smarter it gets. It also features browsable, user reorderable playlists.
http://www.musikcube.com/
Another versatile audio program: Jinzora http://www.jinzora.com/
Someone wanted a program that could organize their music .. Jinzora can do that, and more..including streaming your music to _any_ computer.
Songbird, a jukebox and web browser mashup built from Mozilla: http://www.songbirdnest.com/
B-Works, a multimedia authoring and graphics software with MP3 support, great for autorun CD - a easy to use CD autorun and multimedia authoring tool. http://www.mediachance.com/digicam/bworks.htm
Audio programs here:
Subsonic: http://subsonic.sourceforge.net/
Vibe streamer: http://www.vibestreamer.com/
And even though you do not have a forum for unusual or interesting 'free' sites (hint hint), you might want to check out 'Ficlets.' A ficlet is a short story (1024 characters) that enables you to collaborate with the world. Once you’ve written and shared your ficlet, any other user can pick up the narrative thread by adding a prequel or sequel. http://ficlets.com/