Have you ever wished there was a way for students to draw or paint in Moodle? If so, you'll be pleased to hear that one of our GSOC 2009 projects is a paint tool for Moodle.
The paint tool is being developed by Mihai Sucan, from Arad, Romania, and mentored by Martín Langhoff. Mihai has already developed a proof-of-concept / demo web application Paintweb which you're welcome to have a play with. 
At the moment we're looking for feedback on the Paint tool specification. Please join one of the discussions in the General developer forum, gsoc: what you paint is what you get and/or Thoughts on the paint tool interface.