Zeodia is a site that allows you to take pictures and add time, location and content together to create a video that can tell a story about the picture.
It's free and easy to use. You can add transitions and zoom effects to the photos and add sound.
This is another tool that students and teachers can use for storytelling and creating projects. It might be fun for students to use it to share what they did on vacation, things about their family, or to create a project on a topic for class.
Related:
PhotoPeach - easily create and share photo slideshows
Qwiki - search results as a multimedia presentation
projeqt - an artful way to create and tell stories