Ally Mini McBeagle
Cartoon ebooks for children and pet lovers of all ages. Available on CD or as download.
http://www.allyminimcbeagle.com

Baby Bird Productions
Animated and still picture children's stories and fairy tales on CD or to download.
http://www.babybirdproductions.com/

Booksjust4me
Full-screen books with sound for toddlers through beginning readers, downloadable or on CD. Available as single books or in sets. Downloads require Windows MediaPlayer.
http://www.booksjust4me.com

Childrenzbooks
Illustrated ebooks for children, available as individual downloads or as collections.
http://www.childrenzbooks.com/

Image Jester
User can upload images and see his/her face and name placed into a story or card, which can then be downloaded. Requires Acrobat Reader.
http://www.imagejester.com

Playtime Books
Audiobooks for 5-10 year old children, on CD or as downloads. Requires Windows. Author submissions accepted.
http://www.playtime-books.com

Rainbow Scout
Children's adventure book available to buy in ebook format. Sample chapters available on the site.
http://mysite.wanadoo-members.co.uk/rainbowscout

Smink Works
Animated stories for children, to download or on CD. Requires Windows.
http://kids.sminkworks.com

Talking Treasures
Animated interactive picture books, with music, sounds, narration, and an option to record your own narration, replacing the narration in the book. Ages 3-12.
http://www.talkingtreasures.com