I have actually used Photostory with my students. I've used it for a presentation about the country we studied(but I lost that file since my first laptop crashed!). I've also used it to have students share their writing by posting student's writing and having them read their story into a mic (but the mic didn't record LOL, but I do have their writings!-video 1).
I also have created a "Guided Reading for Parents" for a graduate class(video 2-my first time creating one!)
I think Photostory is a great and SIMPLE way for students to present anything! It can be a great way to create a continous story. All students would need to do is to put a picture and record. If students can type the words, it would be even better, or can be added later. With our new technology we will be receiving, I am sure that more products will be created since there won't be any risk of FREEZING while the students are working! Teachers can also use this as a teaching tool for students to do a specific project or task. There is so much you can do with Photostory - the sky's the limit(except for copyright laws!!!YIKES!
Enjoy!