My favorite digital literacy is digital story telling. I've introduced it as part of a writing course for the past year. Digital stories are personal stories voiced by the writer + images + a soundtrack. They allow students to explore the relationships between words and images, give them a sense both as a writer and a creator of digital content, and let them share their work with the classmates and anyone else they want to.They work with a variety of technologies - blogger to post and share drafts of their stories, audacity to record their stories, and moviemaker or Imovie to put their stories together. Their stories have been about a variety of topics: their families, their careers, their friends, their hobbies, - whatever they wanted to write about. I am also working with a group of students who are writing stories about their lives at the university, which will be used to help incoming students adjust to the problems international students face.
I haven't posted any of our students' stories, but if you are looking for more information, the best place to start is http://storycenter.org/