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Microsoft makes two products (at least) that can do this. The Windows Plus! Media Edition has a program called Photo Story. You can add photos, add music and titles and some panning effect. It is very simple to use and pretty fun as well. You can get a review of it here.

The other product from Microsoft is Movie Maker 2. MM2 is a video editing software to put clipt together into a longer movie. But you can use photos with it as well. There are all sorts of effects, wipes, that you can add. You can add a soundtrack if you want.

The negative to these two products is that they output in Windows Media format so some people may not be able to view them simply. On the plus size, they are cheap. The Plus! pack can be had for next to nothing after rebate. And MM2 can be had for nothing more than the cost of a download.
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