After some looking and thinking I have decided to get Toon Boom Studio
along with QuickTime pro. This combination on a Mac OS will enable
students to combine animations with DV clips in iMovie. So kids can do
cartoon animations and then interact with the animations in their
videos. Sounds very cool in theory and I hope to make it work. Also,
Toon Boom lets you export animations as flash movies.
I will also get two copies of Final Cut Express so that advanced
students can do some high end DV editing.