Great How-To Guide for Digital Storytelling, by Silvia Rosenthal Tolisano, covering lots of different tools available here.

StoryJumper

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Choose from a wide range of characters, props and backgrounds or upload your own photos and scanned images to illustrate your story and publish it direct to the StoryJumperwebsite.
Classroom option allows you to enrol students collectively and securely.
Type text directly onto pages in text boxes, labels or speech bubbles. Lovely page-turn animation and paper rustle, too!

Zooburst

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Create virtual pop-up style books for free by registering on the Zooburst website. Augmented reality version available using a webcam.
Completed stories are hosted on the site but can also be embedded into blogs, websites, VLEs and wikis. See tutorial by Kevin McLaughlinbelow.

Little Bird Tales

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Lovely site to create digital stories with the added advantage of recorded sound option. Upload your own photos and scanned pictures or draw directly into the intergal Art Pad tool. Use a microphone plugged into your computer to narrate the story.
Completed stories can be shared publicly or privately on the site, embedded into blogs, websites, VLEs, wikis, etc. or emailed.

ToonDoo

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Online comic creator. Drag and drop or click to create short comic strips or longer comic books. Save and/or share them on the site,
Completed comic strips and books can be shared online, emailed, or embedded in other web pages, blogs etc.

DomoAnimate

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Create animated video stories in a safe environment, designed for educators and students. A great tool for the languages classroom.
See Joe Dale's video tutorials on the CILT website here

GoAnimate

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Create animated video stories free of charge and share on the site or embed into blogs, vles, wikis etc. Some great tools and animation effects, but please note that this is a public site not specifically for education. If this is a concern, sign your school up to the sister site*, GoAnimate4Schools. (*Requires a school e-mail address)
See tutorials here

My eBook

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Myebook is a Web 2.0 tool that allows users to develop and create their own digital books using their own pictures and text. Users can create, publish, share books within the Myebook online community or embed into blogs, wikis, vles etc.

Voicethread

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A VoiceThread is a collaborative, multimedia slide show that can hold images, documents and video. Viewers with permission can comment on the slideshow - using voice (with a mic or telephone), text, audio file, or video (via a webcam).
Users can draw on screen while commenting and choose, through moderation, which comments are shown. VoiceThreads can be shared on the site or embedded in blogs, vles, wikis etc.
For more information, see @primarypete_ 's fab tutorial for using VoiceThread in the classroom, and/or tutorials on the VoiceThread site, including this VoiceThread about VoiceThread!

Kerpoof

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Kerpoof is a multimedia Web 2.0 resource, owned by Walt Disney and designed for use by children to create artwork, movies, spelling games and story books. Most content is free and educators can sign up for a free class account giving access to more features.
Some lovely ideas for using the story book maker are available on Sharon Birch's blog here
Typing accents into books is possible by selecting the correct language and using ALT codes - see here for explanation. (Page to bottom of p.3)