GoAnimate for schools
goanimate4schools.com/
A web app that lets you generate fully animated cartoons where you can make animated characters act out whatever you’d like (from Techcrunch.com)

Where else to go

http://teachweb2.wikispaces.com/GoAnimate
www.youtube.com/create_detail/GoAnimate


I prefer Xtranormal though http://www.xtranormal.com/

I like it because you have to select the camera shots and movements, as well as write the dialogue. I have had students make some really great movies out of it.

Again, you have to pay if you want to select from all the features, but you can create a really simple movie for nothing.