I have links to all the screen shot galleries I know of on dragon-city.org in
Word's Spycam Image Archive.
For software for making fan art, if you've never used any before, then I suggest you start with the free software before you buy anything. If you're on a Windows, then you've got Paint already. If you're ready for something more powerful, then try out Pixia, Art Rage and GIMP. They're all free and you can find the download links on the
Fracshun's Fan Art Page.
If you're able to learn these and you want to get really serious, then you can take the plunge and get Photoshop. Note that if you're a student, you can get a substantial discount on this, so be sure to take advantage of that.
I use Photoshop for my all my fan art. I originally got it for my digital photography hobby, but I love playing around with the more artistic side of it as well.