Vuvox is a drop-dead gorgeous online application that makes sharp multimedia presentations. Users import their photos and videos, and then can place them in interactive templates (like street scenes, photo walls, and so on). The presentations can then be embedded in MySpace (of course) or other sites.
It's designed for kids, who are used to the high production values of MTV and the like. It really does look like it can take snapshots and lousy videos and tart them up to a high degree of slickness.
Killer demo here at Demo 07. Site's not live yet. Should be in a few weeks. Watch for it.