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"Since the first time I tried it last fall I have been impressed with HSTRY. HSTRY is a great multimedia timeline creation tool. There are two features of HSTRY that make it stand-out from the crowd. First, as a teacher you can create an online classroom in which you can view all of your students' timelines. Second, as a teacher you can build questions into timelines that you share with your students. You can even insert explanations of the answers to your questions. "

I use http://www.joomag.com/ with my kids. The name of the site is terrible, but the final products are AMAZING.