http://animoto.com/education/ to see how you can use it in the classroom.
Just explore the site, already:) You can try it out making 30 second videos, and so can your students. I have gotten the yearly subscription for about $30 and I can make full length videos (10mb song limit). I am going to upgrade (I believe you can do this on a monthly basis)… to get better DVD quality images… I have recently gotten married and plan to have fun making wedding videos over Christmas break. A school I teach in often has used this program for a DVD yearbook and it looked FANTASTIC and the KIDS LOVED IT!!!