Between the Lions http://pbskids.org/lions/stories.html
Bookpop http://www.bookpop.com/index2.html
International Children's Digital Library - A Library for the World's Children in many languages, including Arabic! http://www.childrenslibrary.org/
Wired for Books has Beatrix Potter stories you will enjoy. http://wiredforbooks.org/kids.htm
Children's Storybooks Online has illustrated stories for all ages. http://www.magickeys.com/books/
Tumblebooks is wonderful for listening to or reading on your own animated stories by well know authors! I listened AND read along to by Robert Munsch and it was fantastic. I signed us up for a "free trial" to Tumblebooks that lasts only a month so get busy reading before the time is up! http://www.tumblebooks.com/library/auto_login.asp?U=acs&P=trial
Reading rainbow is great way to get hooked on books. http://pbskids.org/readingrainbow/