I recently bough Photoshop CS3. Do you have any tips on how I can learn to use the program? Know of any good free tutorials?

I would agree that you can find loads of great tutorials online but there are some wonderful books out there too. I have found Scott Kelby's books to be very useful and have also made great use of The Photoshop Wow Book by Linnea Dayton. Photoshop also has some wonderful built-in tutorials under the help menu. There is an option to have something called "what's new in photoshop" tips turned on that will give you extra hints within the menus of the program itself. That's turned on and off in your preferences menu. Photoshop is at its most powerful when used to adjust lighting/exposure, correct blemishes, bring out detail and recompose. It has great everyday tools that make these things terribly quick and easy. You can easily get rid of red-eye. straighten things and combine shots. When you get more advanced you'll find all kinds of things to do including generate instant web galleries and animations. Have fun!

There are three ways that I learned:

1. Browse the web for graphics and then try to duplicate them in Photoshop.
2. Give yourself assignments.
3. Pick a tool, filter, or some option that you haven't used before and then try to figure out what it does, how it works, and then use it in some photoshop document.

There are scads of tutorials online: http://www.tutorialized.com/tutorials/Photoshop/1

http://www.good-tutorials.com/tutorials/photoshop is probably where I learned most of the basics of using photoshop.

This guy has been around photoshop since the beginning http://revision3.com/pixelperfect/