CogDogRoo - StoryMedia
Sources for Creative Commons and public domain images, audio, and video for use in digital storytelling
CogDogRoo - StoryTools
Over 50 tools for digital storytelling, categorized by tool type
Children's Books Online - BigUniverse.com
You can read picture books online for free at this site, but the exciting part is being able to create your own books using their authoring tool and collection of images. Author blogs and other features are also available.