Cstitch is a free and open source program for creating cross stitch patterns from images.

Features:

Load images in various formats, including jpg, png, and gif.
Choose from several options for selecting colors to be used in the pattern →more information.
Choose how large you want your final pattern to be (by choosing the size of squares to be imposed on your image →more information).
Edit your pattern (see the screenshot above) with tools including draw, change color, and fill region →more information.
Save your project and restore for later editing →more details.
Save the final pattern as a pdf.