CreaToon® is a powerful software solution for the PC to create 2D animation in the cut-out style.
Its main features are:

• real-time editing previewing,
  
• automatic in-betweening,
  
• freedom of graphical style,
  
• combining bitmaps with vector graphics.

Important notice: CreaToon 3.0 is now available for FREE download!
(Don't forget to also download the unlock software, also available on the download page.)
With the Freeware release, further development and technical support is ended.

System requirements:
Windows 95, 98, NT4, ME, 2000, or XP, with OpenGL support
- Pentium II or higher
- 128 MB RAM
- Video card with HiRes color (16, 24 or 32 bit), hardware OpenGL acceleration and texture memory. Make sure that you install the latest driver of your graphical card.

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It sounds like a nice application.
I'll have a look! thanx. :thumbup:

The current release version is 3.0 (build 3.0.0.36).
Main new features in release 3.0

• Improved user interface.
• More curve drawing functionality.
  
• Bug fixes.

Tutorials for 3.0 can be found here.
Important: a screen resolution of at least 1024x768 is needed to use these tutorials.

CreaToon is using OpenGL to obtain fast rendering and great features.