I love using Photo Story (free from Microsoft) to create digital stories. The students can use a digital camera and go meet the "important" people in the school like the nurse, librarian, custodian, music teacher, art teacher, lunch person, etc. They can take photos and "interview" them or just listen. Back at the classroom, they can work together to narrate a digital story that you put together. This can be exported to a movie and hosted on your classroom website for families to see.
I use digital storytelling for many projects including a classroom version of "Brown Bear."
Hope this helps,
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