I don't think that it is. I think Photostory will only do photos, it will not do any animations or video. I suggest using Windows Movie Maker. Just make sure students add any music last, as the program is a little buggy and usually crashes if you try to do to much editing after you add the music. Make sure the students save often.
Photo Story 3 will absolutely allow you to add words to a project. There is a whole section devoted to recording. If you begin a project and import a pic you can move on and figure it out very easily. It is very user friendly
If you are a mac user the program fotomagico would have done the same job better than photostory 3. Similar features, yet a little more powerful.
http://www.boinx.com/fotomagico/overview/
Please be patient with me.... I am a mac user who is proficient in apple photo and video editing programs. At school we have Dells and very little time for a learning curve. I want my students to do state projects by capturing photos of sites, etc. I then want them to do a voice over. It sounds like photo story will do this. For my more techno advanced kids I want to have them "blabberize" an historical figure in photo story. Is it possible to add the embedded "blabber" to the photo story. Sorry if this is a stupid question, but I feel ambitious and lost!Thanks, Marie