Hi.
I'm not sure there is such a beast available in the open source world yet. If there was I'd have found it, as I had the same requirement. But, it's certainly possible to create one with Silverlight 3's capabilities, combined with a small dash of open source 3rd party libraries such as FJcore. I have done just that, as I wanted to be able to add a local image file, and upload an optimised version to remote database.
The uploader/editor I built does the following:
Select an image (JPG, GIF, PNG) from local file system
Extract EXIF data
Rotate the image
Crop image
Adjust brightness, contrast, saturation
Resize and upload an optimised JPEG via a webservice
Writablebitmap is the key to editing bitmaps. It's farly straightforward, and that what I use to render the image, crop the image and resize before sending. It's worth remembering that a bitmap is not a very effecient way to send the image, so I used FJCore to encode the the bitmap beforing sending. The other really useful thing that SL3 does is support pixel effects writen in HLSL. There are two built in ones, drop shadow and blur, and you can write your own. I adapted some HLSL code from the DirectX SDK to produce a custom effect that adjusts the contrast, brightness etc.
Oh. And one other gotcha. I'm not sure if it was a bug or my own lack of understanding, but I had some difficulty in rotating an image with the writablebitmap constructor, and ended up writing a simple array transform to rotate the writeable bitmap.
There's a demo showing all of the features (bar the upload) here:
http://www.sharemyroutes.com/demos/imageupload.aspx