Check out Scratch!
Scratch is a new programmable toolkit that enables kids to create their own games, animated stories, and interactive art — and share their creations with one another over the Net.
Scratch is designed especially for youth at Computer Clubhouses, an international network of after-school centers in low-income communities. The Scratch project aims to create a programming culture at Computer Clubhouses, empowering youth (ages 10-16) to express themselves fluently and creatively with new technologies. Scratch is being developed by the Lifelong Kindergarten research group at the MIT Media Lab, in collaboration with KIDS research group at the UCLA Graduate School of Education & Information Studies. Scratch builds on the Squeak programming language, developed by Alan Kay and an open-source community of colleagues.
Scratch will be available for public release later this year.
Theres a pre-release version of Scratch available for evaluation and comment