Using Rafaël, you can create shapes, apply rotations, and more. The library’s coolest demo has to be the image reflection:
Every bit of what is created by Rafaël is a DOM object. You can add events and create animations by modifying the objects. It’s a slick little library (only 18K compressed) that could be a foundation for doing some neat things using standardized code and no plugins.
The library uses scalable vector graphics (SVG) and Vector Markup Language (VML), so it works in all modern browser (plus IE 6!).