Many parents have asked me where to find good books for their children. There are many sources, but my two favorites have the great advantage of being free.
The Baldwin Project is an online collection of children's and juvenile literature. All of the works were published before 1923 and, therefore, are in the public domain. If you are looking for a new family read-a-loud, this is a great place. Many of the volumes can also be purchased on the site.
Librivox is a collection of public domain audio books. The catalog is a little hard to navigate. I think the best way to find a new book is to choose by genre. All the recordings are available in mp3 format. Next cold, rainy day, download a book to your mp3 player, turn off the TV and let your child get lost in another world. You may find you have some favorite readers. We like books read by Kara Shallenburg, she seems to have a knack for pickings some excellent books for kids and has a very pleasant voice.
As I think of more resources for children I will add to the new link list in the sidebar.