I am currently working with students using Kodu and Photosynth. I already use Live MovieMaker and Photo Story and find those of great value. Check them out and see.
Microsoft offers free tools to help engage students in a variety of subject areas—from moviemaking to collaboration to science and beyond. Teachers can download these tools for free, the majority of which require no special training.
http://www.microsoft.com/education/ww/teachers/Pages/free-products.aspx
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