Photoshop for Kids (of all ages): Animation Made Simple
I can see this also as part of a collaborative project. Children can create a library of digital artwork with backgrounds and graphics/props.(saved as .pngs or .gifs) to be shared among all. Then students can use the assets to create their Photoshop animations and build a storyline. Others could be in charge of sound effects, writing, story boarding or voice overs. This idea would also work well with Flash or video projects.