One of these sites I just heard about and haven't tried yet, but it sounds really easy and something that kids could really learn from. The other is one I heard about in the Spring, tried it, and loved it. Both could be very good tools to use in school, especially in social studies or science where you might be studying a topic in the news. Here are the sites:
Link TV: Know the News: This site has an interesting idea for students to try. Students can find a topic currently in the news and search for clips of it at various news services and see how similar or different the reports are. They can take each clip and cut/paste them back to back to play a string of news stories about the same idea. Or students can simply make their own newscast by cutting and pasting stories from all over the world by different news media. Either way, students will be working with the news and seeing how it gets reported. Might be a good way to talk about bias, sources, and the power of media in general.
Jack the News is a very cool and fun site. I have to admit that I have played around with it several times, one time even recreating the Des Moines Register online news to show only my family's latest news. I even added my family's picture to the front page picture! But, you can use it for education too by having students re-make a website about a topic, the current news, or their book they are reading. The possibilities are endless. And it is fairly easy to use as well. Give it a try!