Check out this website. It is pretty funny! My friend Tim showed this to me over lunch today. You can upload a picture and turn yourself into a dancing elf, you can even add your voice to it if you wish!
The link is here Elf Yourself
Just a warning though, you will probably need a fairly fast internet connection to enjoy it fully. It has to load some hefty flash content. But go check it out and let me know what you think!