As far as made-up circuits, paper and pencil (or pen in many instances with me in class) do the trick.
Real world edits, I would use MSPaint and use the original tracks on the archived Motor Racing Circuits site. But I also like to use Gped and instead of post that, I actually export it to a .gpx file (read up about it on Gped) and import into Google Earth where it's easier to manage and get a screenshot of.
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