Everyday when I get ma DD to sleep, I tell her some of these stories:
( Till I explained the concept of Death, I used "naughty-corner" for things that die or died).
http://panchatantra.org/
OR
http://members.tripod.com/~srinivasp/my ... antra.html
OR
This one has other tales too ( Panchatantra, Jataka tales, Aesop's fables, Fairy tales, and Arabian nights)
http://www.indiaparenting.com/stories/index.shtml
The Jataka tales are his life stories as various life forms, spreading the message of justice. These tales will show you how good ultimately triumphs over evil.
About Panchatantra:
Panchatantra, is a collection of five volumes of stories written by a teacher to help instruct the different aspects of kinghood for princes. The five volumes together serve as a manual for a prospective king, to help him in deciding how to rule, how to choose his fellow friends, fellow ministers, how to conduct himself in daily life etc. The collection of stories in Pancha Tantra are a real treat for parents to help them in guiding them towards values in human life. Every story in Pancha Tantra is accompanied by a moral.
The story of Panchatanra itself is an interesting one in that, the intention of writing it was precisely the one mentioned in the previous paragraph, namely, to serve as a manual for a prince to rule as an ideal king. The background story of Panchatantra goes as follows:
"Long ago in the kingdom of Mahilaropya, there lived a king who was ruling very ideally. He had three sons, who were not intelligent. The king was worried about the heir to the throne, as he knew that his sons were incapable of governing. He was desperate to find a good and knowledgable teacher for his sons who would teach them the scriptures and make them knowledgeable in a short time. His minister then pointed towards a skilled pundit, VishnuSharman. Vishnusharman was old and the king was worried as to how the teacher could accomplish the teaching to his sons as he told that even an intelligent man takes more than twelve years to grasp all the elements of scriptures. Then VishnuSharman convinced the king that he would teach the princes about kingly conduct through a series of stories, which would be more effective than the scriptures. Thus VishnuRaman compiled the collection in five volumes termed as PanchaTantra meant to serve as the guide for the princes to learn about kingly behaviour."
