I've been developing a set of simple readers (called "Little Readers") for my son Jamie which should also be relevant to teachers who want to teach basic reading skills to students aged 4-7. The first of these (The Beach) is now available as an online storybook (feel free to embed the version below, or access the master version at http://screenr.com/8x8):
For best visual effects and delivery, I recommend hitting the zoom icon to the right of the volume setting there. It will give you a high definition full screen version which is perfect for using at home or in a classroom with younger readers.
I'm not exactly a master story-teller, but I've made an effort in the recording and pacing here to make sure learners have time to repeat each line of the story after the narrator (and also in the Sentence Review section at the end).
You can also use the picture grid at the end to get the learners to re-tell the story to the best of their ability just by using the story images in sequence (without text).
I have print versions of these Little Readers ready as well, but still a little unsure about the best way to format and distribute them online. I intend to make these online versions free for all to utilize!
Oh, and my son Jamie has been instrumental in these Little Reader storybooks. He often tells me what to include in them! I really should be acknowledging him as a co-author, shouldn't I?