Yesterday I happened across another great website for children's stories. Check out storylineonline.net to see members of the Screen Actor's Guild read popular children's literature through video streaming.
From what I could gather, Storylineonline would be a great resource for parents and teachers, not just kids. The streaming is set up intuitively, offering different speeds to accommodate your internet settings. With each story, one can download the accompanying activity guide. The videos themselves are impressive. You see the storyteller and the story's illustrations in different fames with music/sound effects where applicable. I let my children ages 4 and 6 watch some stories. They loved it!