E-Learning has the potential for providing significant improvements in accessibility and opportunity to learning because of its distributed nature. Educators have been using storytelling as an effective mode of teaching since long time. Collaborative activities promote conversation among the learners, and this assists learning by providing each one of them with a slightly different view of the subject matter. Studies have shown that virtual environments with children interacting and cooperating with each other has a positive effect on their learning experience. In the e-learning arena, many efforts have been made to model the storytelling concepts. In this paper, we do a quick review of these tools and discuss their advantages and disadvantages. We go on to describe NatakWeb, which incorporates the collaborative features for effective story creation and playback.