I'm doing a project for my religion class on the obon festival and the bon dance. If you can give me a website or video link that shows me how to do the dance step by step I would be forever indebted! Thank you!

This website you have to join to see the dance. Not step by step, but a start:

Japanese TV Online Videos Asian Entertainment by Rob Pongi (http://www.robpongi.com)

I love the obon festival and obon dance. That brings back some happy memories.
Japanese Bon Odori Dance Video 2007 (http://www.robpongi.com/pages/comboJAPANESEBONODORI.html)