Storybird is an online collaborative storytelling application in open beta testing, which means for now anyone can sign up and use it for free, but at some point there may be a charge.
Storybird has a simple drag and drop interface an allows you to select some beautiful images to illustrate a story you or your students write. The story can then be posted online or e-mailed to friends and families.
Children and adults can also read stories others have written and create a reading list. These stories have an age range the author(s) assign and allows comments. The stories can also be read on an iPhone.
Their blog says that coming soon you will be able to upload images, which would be perfect for social stories, and to print out stories.
