I use an older version of photoshop elements that let's you do just that. Take a picture, crop it to a circle (although not as good a crop feature as photoscape) then fit past into a new picture with a transparent background. I didnt like the newer versions of the software as they added a bunch of features that made photo editing easy but made the very simple tasks (scan, crop, rotate) more difficult.

But an advantage that you lose in Picasa and Photoscape is the ability to capture the image in the software. Now you scan the chip and save it, then open and crop it and save it and lose some of the image to the compression during saving. Also you have to do everything twice. Programs like photoshop elements will let you acquire the image from your scanner directly into the application.

That said, if I have an image I will always use photoscape for manipulation.

By the way, if there is a feature you would like the author is very willing to talk about it and you may see it in a future release.