Little Bird Tales is one of the replacements for Kerpoof (closing on April 15th) that I recommended yesterday in this post. Little Bird Tales is a nice site intended for younger students to use to create digital stories. Little Bird Tales walks users through each step of creating a multimedia story. Users can upload images, draw images, or record from their webcams. Stories can be written with text or narrated by students using microphones connected to their computers.
In the video below Beth Holland from Ed Tech Teacher (an advertiser on this site) demonstrates how to use Little Bird Tales and she makes suggestions for classroom use.