This is not terribly sophisticated, but some may find it useful:
1. You create a forum in which you list vocabulary items related to a topic you're teaching. I teach German, so I could provide a list of words that can describe people, for example (nett = nice, freundlich = friendly, gemein = mean, laut = loud, and so on).
2. Have students go to http://www.spellmaster.com/, where they may create simple, interactive vocabulary practice activities in Flash.
3. Students then upload their Flash activities to the forum, so that other students may access them.
4. Students may provide feedback in the forum about the activities.
Of course, there are other modules that you might prefer to use for this. I just really like the forum module.
At any rate, it's a fast, free, easy way for students to become content creators and for everyone to practice vocabulary.
My students and I like it.
Teaching with Moodle
Students Create Flash Resources
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