Your assignment is to tell us a story about some process (how to drive a car, how to construct an elephant, etc.), or some personal narrative, (what happened on that fateful day I visited my great-aunt Elizabeth in Elmira), or some other sequential tale.
You should use the same basic technical structure that the example uses: Your story should have clickable text at different places in the narrative. When the user clicks on these bits of text, the illustration in the Applet should "act out" a corresponding visualization.
Be fun, be creative, use colors, timing, surprise. Make us laugh or cry. The graphics don't need to be fancy, but your little story should have an interesting and/or logical progression.