This is a great idea for real world applications. The students could actually use this in their first venture or use the technology to tweek it for a similar idea. I didn't know wht PhotoStory was until I researched it. As with any new technology, success is directly related to ease of use. This is especially true for those who might be put off by learning new technology. Nice work.
Do students use existing photos or do you allow time to take staged pictures that they can use in their advertisements? If you have used this before, did any want to take actual video and use that?