The kids favorite has been Gus Was a Friendly Ghost,, and Little Racoon and the Thing in the Pool. Both are cute stories that I loved as a kid.
My favorite (hands down) has been Sylvester and the Magic Pebble. Goodness that book gets to me every time-- especially when I read it with a child on my lap and read the last line "Some day they might want to use it, but really, for now, what more could they wish for? They all had all that they wanted" (sniffle, sniffle). I loved that book as a child, and nothing has changed.
What about you? What are some of your favorite books from childhood?