http://info.piczo.com/piczo/home/piczoPrivacy.html

Basically it seems like a mini-social networking site for kids. If they put a password on it should be fine but they should only give the password out to family/friends (and they should not give out THERE OWN password).

The one thing that would worry me is that I can't actually find a persons name on the site (like the owner of the company).

The main thing you need to control is what information your kids put up - make sure that they don't post anything that could be used to personally identify them (address, phone number, last name)...