I know a cibercafe at Montera, close to the corner of Gran Vía (besides the McDonnalds) where you can plug in your camera providing that doesn't need any special software.
As for the image editing, I doubt any cibercafe has Photoshop. Their licenses are expensive and design is not the main goal of a cibercafe.
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The best tips from your favourite hostal in Madrid.
Hostal Chelo at
http://www.chelo.com