I have been waiting for years for a great online video editor.  Something that will outdo iMovie and work for free online. We got Jaycut (briefly) and Creaza (sort of) and I am still holding out for Aviary's video editor, but for now I am optimistic about WeVideo.  It offers a comprehensive video editor that will allow students to work on videos anywhere and store their project in the cloud.  Channel your inner Scorsese and put the power of video to work in your classroom.  Oh, and give FileLab a look while you're at it.  Enjoy!

Update:  You can access WeVideo and other great tools from Youtube Create!