Kids are creative; there is no getting around that. Unfortunately, the Internet is not a place for creative kids, because so many of the sites require users to be 13-years-old to post content.
KidzVuz is a free service that allows kids to create and publish video content in a safe place that is for them. All content that is uploaded to the site is owned entirely by the children, no data is ever collected about the uploaders and content can be completely deleted at any time. Also, after getting old enough to venture away from the system, and content that was posted can be transferred to YouTube, Vimeo or anywhere else without issue.
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Live segment by Jeffrey Powers of Geekazine and Don Baine, The Gadget Professor.