Web 2.0 Defined:
Web 2.0 refers to a perceived second generation of web development and design, that facilitates communication, secure information sharing, interoperability, and collaboration on the World Wide Web. Web 2.0 concepts have led to the development and evolution of web-based communities, hosted services, and applications; such as social-networking sites, video-sharing sites, wikis, blogs, and folksonomies. ~ Wikipedia Entry

Sites to check out:

Blabberize
Upload an image and make it talk with your content.


Voki
Voki is a free service that allows you to create personalized speaking avatars and use them on your blog, profile, and in email messages.

Wordle
Wordle is a toy for generating “word clouds” from text that you provide. The clouds give greater prominence to words that appear more frequently in the source text. You can tweak your clouds with different fonts, layouts, and color schemes. The images you create with Wordle are yours to use however you like. You can print them out, or save them to the Wordle gallery to share with your friends.

Xtranormal
If you can type... You can make movies!
Xtranormal’s mission is to bring movie-making to the people. Everyone watches movies and we believe everyone can make movies. Movie-making, short and long, online and on-screen, private and public, will be the most important communications process of the 21st century. Our revolutionary approach to movie-making builds on an almost universally held skill—typing. You type something; we turn it into a movie. On the web and on the desktop.

Animoto
A web application that automatically generates professionally produced videos using their own patent-pending technology and high-end motion design. Each video is a fully customized orchestration of user-selected images and music. Produced on a widescreen format, Animoto videos have the visual energy of a music video and the emotional impact of a movie trailer.

Stupeflix
Got images ? Create videos. Stupeflix is a REST web service that turns your pictures, videos, and text into professional videos.

Glogster

Glogster is a revolutionary way of expressing your mood, feelings and ideas, and it goes miles beyond text or video! Creating a Glog lets you express all those things you haven’t been able to describe by words. It opens the door to a whole new world of communication – just choose a background, throw in some shapes and characters from our galleries, add text, your own videos or photos and perhaps a pinch of music and there it is! In just a few minutes, you can make a digital poster, a colorful medley of ideas, reflecting your own special style.