You mean other than Windows Live Photo Gallery and Photoshop CS4? Sorry don't mean to be rude but those two programs work perfectly in Windows 7. So does Adobe Lightroom 2.
I have no idea how in-depth you're looking to "touch up" photos. Hardcore stuff like Photoshop and GIMP? Or user-friendly ones like Picasa, Photo Gallery, etc. Your request is pretty general. Virtually all programs (be it photo or otherwise) that worked with Vista should work with 7. Also, most WinXP apps should work under 7 as well.