Puppet Pals is a great app! My students use the Puppet Pals app (compatible with iPad - but it works on an iPod too) to retell stories. They are able to choose the characters and settings. Then, they recorded themselves telling a story. It's great for those shy students. Below is a sample story (I'll admit, I tried to persuade them away from the 'helpless princess' but the kindies vetoed me), they made up everything, including the story line. The focus was dialogue, so they played the parts of the characters. Here it is: from start to finish it only took 5 minutes!