I'm always amazed when I find a new tool on what I'm starting to call the Collaborative Web, since it moves so far beyond merely reading and writing. Case in point, Jaycut, a free online video editing site that allows users to upload, edit and share (in multiple formats) their videos and slideshows.
Josh Catone at the Read/Write Web gives the site an impressive review, so I definitely need to check this out. I have plans to include more digital storytelling (through both stills and video) this school year, but collaboration has always been difficult as kids complain "We live too far apart. We can't get together." This may solve that problem nicely.