[Sean Alexander] Photo Story 3 for Windows makes it easier than ever to share life’s memorable moments in new ways by adding motion, effects, music and more to your digital photos. The resulting slideshow-like video can then be easily shared in a # of ways. The files are small thanks to the new Windows Media Image v2 codec.  Anyone with WM Player 7 or higher can enjoy Photo Stories with a small automatic codec download; WM Player 10 is recommended and includes this new codec as well.

Photostory is one of my favorite apps, and the new version is really awesome. It can be downloaded from here.