I played around with Letterpop and find it a little clunky to use. Adding photos is a real pain unless you have all your photos in Flickr. I add a lot of photos to newsletters through clip art and stock photos from the web. Adding them to Flickr first is an extra step.
The templates are nice but a little restricted to where you can place text.
It is cool, though that the newsletter can be easily emailed.
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