From Mark Rounds: Web-Ed Tools Paper.li:
"The art of online storytelling is all about presentation. As a non-linear storytelling engine, Projeqt gives creatives the ability to weave together stories dripping with style and personality from Flickr photos, RSS feeds, tweets, YouTube or Vimeo videos, and any media stored on their own computers.Users can craft "projeqts," whatever their purpose may be, by adding content in the form of slides. Create a slide, name it, add tags, and fill the slide with a photo, text, video or feed. Slides are published to create the web story and be can reordered via drag and drop. Users can also create a projeqt within a projeqt to serve as a story inside a story.In private beta right now... It took me a week to get my invite."
Great TED talk about the importance and power of storytelling to help us leap over cultural walls, embrace different experiences, feel what others feel.
Storybirds are short, art-inspired stories you make to share, read, and print.
Read them like books, play them like games, and send them like greeting cards. They’re curiously fun.
Qwiki allows users to learn more about a variety of topics through multimedia and storytelling. Users can also contribute content to make Qwiki even better.
RealeBooks.com is your gateway to a bounty of free online family-friendly RealeBooks ("Really Books") - striking picture books, written and designed by students, teachers, and parents from around the world with RealeWriter ("Really Writer") software so ea
Many good sound effects most free, the rest inexpensive. I can think of many applications including digital story telling. Thanks to "Technology Tidbits" for the link :)