Capture the frame with VitrualDub.... Paste into Paint ...
Priced right too...
Bare-bones is to do a screen capture (Alt-Print Screen) of the paused video and paste it into Paint. Note that if you get nothing, you probably have to turn off "Video Overlay" in your graphics card's properties for the duration of your captures.
For graphics editing, Gimp is about the most full-featured free editor out there. It does more than most people need for home use.