Animation Creator by David R. Morrell is being offered over at the Marketplace for $.99. It's a simple application that allows you to create basic animations on your Windows Phone.
The layout is simply, you're present with a blank palette. You can use your finger or stylus (more precise in drawing) to begin creating your animation. You draw your first image, tap the small icon in the bottom left corner, add another page, draw the next image, and repeat the steps as necessary. At any point in the creative process, you can review your animation and edit pages as needed.
Animation Creator has tools to change line colors, change brushes, create shapes, add background images from your photo library or camera.The menu bar retracts giving you the full screen to create on.
Animation Creator was a fairly stable app but I did experience some lag times when additional pages were created or the animation played. It was a fun, inexpensive application to tinker with and Animation Creator gives you just enough tools to create some decent animations. Nothing to compete with Looney Tunes but decent enough to have your friends say "cool".