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In BETA but looks like a very compelling Web2.0 for collaborative storytelling.

Create stories online - students can also collaborate on a story. Nice graphics, very intuitive.

An interesting medium, allowing you to combine various graphical elements and text, and then create a 'path' that leads the viewer from one element to another. Possible applications in storytelling.

50 ways to tell a story using web tools

Lots of neat activites on the British Council LearnEnglish series. This one is a storymaker for kids.

Web site provides a link to download a free (for non-commerical use) program that lets young learners compose a 'non-linear' story. Also, if more than one USB mouse is connected to the same computer, children can work on the same 'non-linear' story together. I imagine that to be a noisy albeit enjoyable experience. Let me know if it works for you!

Another timeline that has obvious application in stortelling.

A multimedia timeline that can be used in collaborative mode to tell a narrative.