Nik Peachey has put together an excellent how to guide for new text to speech tool Xtranormal which can create animated videos from simple dialogues and upload them on YouTube. Check out his demo here to get a flavour.
Bluechoco4life has already tried out the tool for teaching basic phrases in French and the results are interesting. Have a look at French for Beginners 1 and French for Beginners 2 to see what I mean. If you like what you see, you could subscribe to new episodes by pasting this feed into Google Reader. Mmm ...
Unfortunately, there is quite a lot of inappropriate content on the site and therefore I would not recommend pupils login and make their own role-plays. Hopefully an education version will be made available in the future as the learning potential is definitely there. However, in the meantime, it could be used as a model for role-plays or presenting new language as Nik suggests in his teaching tips.
If the site is blocked in your school, you could make a clip at home, download it with Real Player 11 and then bring it in on a USB stick or play it directly from your laptop (if you are lucky enough to have one).
Thanks Nik for the heads up.