Umajin Creative is an application designed for digital storytelling. I haven't had a chance to preview it. I was impressed with the pictures on the website. If you use this application, please leave a comment. It looks kid and teacher friendly. I can see that it has potential!
According to the website, you can "compose multi-page digital documents with rich text, digital photography (including blue screen support), illustrations, sound, video, 3D models, particle fx, interactive functionality, and so much more... runs on both a Mac and PC. It also supports interactive whiteboards and touch screen PC's.. so you can interact directly with the content. With the HP Touchsmart PC you can use real brushes on the screen..to experience digital painting with variable width brush strokes!
Interactive Digital Storybook:
Below: Cool-looking digital brushes.
Above- Sample 3D models
Below- Sample of blue-screened cutout images
Below: Samples of animated particle effects
Seven Custom Functions:
I think the people from Fingertapps are responsible for UMAJIN. Below is a video highlighting multi-touch applications: