When I was a kid I absolutely loved, "The Stinky Cheese Man and Other Fairly Stupid Tales" Of course I was a weird child.
Here is a URL that should take you to some good picture books for children.
http://kids.nypl.org/reading/recommended2.cfm?ListID=61
I also loved watching Reading Rainbow on PBS, but I'm not sure if that show is still on. I do catch myself occasionally watching Between the Lions these days, can't help it.