I have added a very corny image of myself created in Image Chef to my sidebar. This tool could be used in lots of fun ways in the school library. For instance, you could create a "Reader of the Month" display using the student's photo in some kind of wacky template, using different themes each month. The comic strip generator could be used after reading a book with the class; students could create scenes from the book in comic-strip form.
Here is the link to Image Chef: http://www.imagechef.com/