The short answer : yes.
Yes - all files will still be readable
Yes - all (except some exotic stuff) graphical formats can be accessed
Yes - you can even fully access a plain windows drive (fat or ntfs)
From easy to use to (somewhat) harder
-
Macpup - barely needs a PC (P2/128Mb/20Gb is plenty) and runs "out of the box" - very nice
-
Ubuntu - thinks with you, lotsa eyecandy
-
Xubuntu - a bit lighter on the needs, very pretty
-
Debian - stable as a rock
-
Fedora - nice, pretty, needs to be reinstalled every two years, stuff can be broken
-
Arch - fully customisable lego-brick approach,
steep learning curve
Or,
choose one, if you know what you want, but cannot put a name to it...
Luck, and welcome to Linux!
Thor