Here are links to e-books and stories online for children; a mixture of fiction and nonfiction; Islamic and general (the latter are indicated with an *).
Children’s Islamic PDF and PowerPoint books – http://talibiddeenjr.amanahwebs.com/library-islamic.htm
Stories for Thinking Children – http://www.harunyahya.com/kids/kids01_01.html
Islamic Stories for Children – http://www.islamcan.com/increaseiman/index.shtml
Stories4Kids (most in PDF format to download) – http://www.islam4kids.com/i4k/i4k.cfm?scn=ss&ID=9
* International Children’s Digital Library – http://en.childrenslibrary.org/