Tutorial:  Editing Sims 2 Pictures
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One of the two most frequently asked questions I get on the Sims 2 exchange.  This tutorial explains how I edit pictures I take in the Sims 2 game for use in stories.
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NOTES!!!
Pictures CAN be edited while the Sims 2 game is running.  I do it all the time.  HOWEVER, make sure that you are NOT in story mode (I also leave the pictures in the neighborhood/lot mode until changes are done, then move it into the story line up) when you do it as it can cause glitches with your pictures (sometimes I got duplicate pics thrown into my file), sometimes the changes won't take affect, and sometimes it will completely crash your game.  If that's too complicated, do this with the game not running.  You've been warned!
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The programs that I USE to edit my pictures are Adobe Photo Shop 7.0 and Microsoft Photodraw.  If you don't have these, use whatever you have available to you.  The basic paint program on most computers can be used, although the results won't be hugely elaborate.
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I'm going to use the Title Slide for my TGA story series as the example as it's one I do constantly.  The steps are going to be basic (think idiot's guide style) so if you already know a few parts of the process, just skip to the part you need info on.  Here we go!
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1.  First, go to your start icon on your computer taskbar.  Right click on START and select the EXPLORE option.
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2.  You should be taken to a listing of all your computers folders & files. 

Head to your EA Games/Sims2 folder (mine is under my documents from standard installation).

Proceed according to your game type:

Sims 2 ONLY:  You should be able to head straight into your storytelling folder located under your Sims2 folder

Sims 2 (UNIVERSITY):  Maxis changed this a bit, if you have the expansion pack, as I do, you'll need to head to the neighborhood that you're editing the picture for.  In this case I need N001 (aka Pleasantview) since the picture is for my Goth series.  Once in the right neighborhood, open your storytelling folder listed for that neighborhood as shown to the right.  If you open the storytelling folder under just the Sims 2 folder like you did when you only had the original game, you'll find it rather empty.
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3.  If you're in the right folder under your neighborhood, every picture ever taken concerning that neighborhood will be located in it.  The ones that Maxis made, the ones that are made when you create a CAS family, and the ones you take yourself.  You'll also notice things called web entries, that pertains to your uploads etc...don't learn the hard way like I did...leave them the heck alone!!!!

I like to organize my shots by DATE MODIFIED with a view mode of THUMBNAILS so I can see the pictures.  The reason I do it like this, is that you'll see the oldest shots at the top to the newest shots at the bottom, for me storytelling, I'm always in the need for my current episodes shots.  This will also keep your Screenshots next to the matching thumbnail shot for ease.  I didn't used to edit the thumbnails, but now I do, so this makes it easier.
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4.  Since I do my story for the Goth family in chapters, I use an empty lot with some randomly created sim per episode.  Because of this, I take the CAS shot of my sim and use it as my title slide.  So in this case I'll use the sim I created for my Episode 17 Lot. 
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5.  After selecting the snapshot (and right after the thumbnail) I want, I right click and head to open with.  At this time I need to use PhotoDraw so I'll select that as my opening application.  Wait for all the pictures you want to load up in the program of choice.
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6.  Once you have the pictures you want to edit up and running, do whatever you like with the picture until it's the way you like it.

 

One thing to take note of if you're bouncing between applications as I do sometimes, is the size of the slides you'll need.

Screen Shots:
(400 Wide) x 300 (High).

Thumbnails:
128 (Wide) x 96 (High)

This is in PIXELS.  Not inches.
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7.  In the case of my "The Goth Ascendancy" Title slide, I took a picture of a rose, gray scaled it, made it slightly transparent, laid it over a black background, added text over it and grouped it together for easy access to creating the next episode slide.

What you do with your slide is up to you.  It all depends on the program you're using to edit.  I'm not going to give instructions, you'll just have to play around with the pictures like I do until you get your masterpiece.

I like simple slides for downloading ease. If you have to make a complicated looking slide, do not do more than 5 slides per story, as it will lag down the site and people hate waiting around for pictures to upload.  Just a word of advice.  Also try to avoid burning out the retina's of your readers.
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8.  Once your picture is exactly how you want to save it.  Go to your program and choose SAVE AS.  From here remove any (copy) attachments as with Photo Shop, and save the picture exactly how it's listed in the story mode.

Also the picture MUST be saved as a .JPG file or it won't show up in your slides.  This is easy to miss since the Home Crafter and Body Shop programs use .bmp (bitmap) files instead.  Once the name is perfectly matched and it's set for JPEG format.  Save it.
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9.  If you did it right, the picture you changed will immediately show up in your storytelling folder, like so.  ----->

If it doesn't then you goofed somewhere.  Just retrace your steps until it shows up like this.  If you're still in game it should show too.
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10.  When you upload the story to the exchange, the picture should show accordingly.  If you see it correctly in the game story section, then it should be fine on the exchange also.
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11.  One more note to remember is that if you are doing this strictly for a title slide, to remember that it will need to be the FIRST slide in your organized story in your game displayed.  Keeping in mind that when you place slides into the story mode, they go all over the place and you'll have to place them in order yourself.

So for this one, it's the first picture in my line up, making it show on the main title section when you click to read the story, as well as, when you begin reading the story.
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I hope this was simple enough to follow.  It's not a hard process, just sounds complicated without pictures.  Good luck to you all on your own creations.
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You may link the address to this tutorial, but it may not be copied or distributed ANYWHERE else.  Thank you.