Thanks to Jacqui Sharp I discovered Mind42.com which allows you to easily create neat looking mind-maps along with links and images. You do not seem to be able to upload images from file, url only. Also I haven't been able to resize the images, so you would need to plan your images for this.
I love how you can collaborate on a mind-map; this functions reminds me of EtherPad. The best part by far is that you can embed it on blogs and wikis. Unfortunately it will not embed on Kidblogs yet as they are still working on allowing iframes.
I am already using this with my students to plan, and my next step will be to use it collaboratively. I was also thinking of using it alongside net research as a guide and note taking place.
Do you have any other ideas on how to use it in the classroom?