Ohmigosh. Last night I found (don't ask me how) this crazy cool Japanese program called "LiFE with Photo Cinema X" that appears to possibly be built in Flash/Shockwave and allows you to mix your photos, music and text like a DJ/VJ.
The app is very simple to use, thankfully, as the program is not in English. Here's how it works: You can assign photos (3 banks of 20) to keys on the keyboard, the number keys are different transitions, and then "play" your multimedia in real-time into a finished piece that you can save out as HTML, a screensaver or a standalone program. There are 40 different transitions (4 x 10) to choose from when using photos, including the themes of Old Film, Stylish, Default and AppleStyles. There are 20 different text themes (2 x 10). It appears the best way to use LiFE is to play your photos first, then replay what you just did while playing your text over the photos and then save your creation.
Look at what I made in less than 10 minutes: Jeremy's LiFE.
I've emailed two different people inquiring about an English version. This should be bundled with Apple's iLife.