our children's librarian is very interested in doing podcasts of children's stories to put on our website, much like denver public library's podcast page http://podcast.denverlibrary.org/, so i had already looked into audacity and bought a usb headphone/microphone set. i just have to find the time to really play around with it--also the issue of copyrights needs to be investigated.
i think podcasts are ideal for teens, who are used to mp3 players. i liked the teen poetry slam podcast from kaankakee library at http://www.lions-online.org/podcasts/slam09.html, as well as the teen podcasts at county of los angeles public library: http://colaplpodcast.org/.
the education podcast network had some interesting podcasts and good information about podcasting. as with videos, poscasts can be useful for quick instructional sessions that could be placed on a website, to list programs for the month, interviews with authors. one of our patrons is writing a book on the history of our city, and i think an interview with him would be a great addition to our web sites city history page.