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In their own words: "typoGenerator is a random generator for 'typoPosters'. a typoPoster is a poster, created from images and letters/text that doesnt have any sense, just to look good."

Built by "real TV & video producers", build a good-looking music video online quickly and easily. Animoto "analyzes your images", "feels your music", and "customizes a video".
Upload and share your media with JumpCut, plus the site includes a really cool online video editor too.
YouTube now have a web-based video editing tool available on their site. The application enables you "to edit videos and create remixes by combining video clips, photos, and music with graphic effects, and transitions".

Simple photo editing online.

A web-based image editing application, akin to something like Photoshop.

Quality web-based photo editing.
With Picnik you can quickly edit all your online photos from one place. It's the easiest way on the Web to fix underexposed photos, remove red-eye, or apply effects to your photos.

This is a fantastic free service which allows you to convert video files online. Loads of different file types are supported and if you're interested in grabbing a video off YouTube, Revver and the like you can just copy and paste the URL to Hey!Watch and it will grab the video for you to convert. It's a new service and is still invitation only but you can ask them for an invite for now.
Annotate online videos with text, shapes, images, audio and more.