The cool thing about picture replacement is that photo will now appear in the master document on your desktop. You need do nothing - it's just a way of doing 'remote update' of not only your website, but pictures in any Xara document on your desktop (assuming you're using Dropbox or Google Drive).

There is basic photo editing there now; scale, rotate, position of photos within their frames. More powerful photo editing (brightness, filters etc) is difficult in the browser, but something we are working on.