I've been thinking of writing a children's book series for some time now. I've spent a growing amount of time in the children's area not simply for my 20-month old daughter, but also for research. I've come to find out that there's more talent not simply in storytelling but in design and theory than I'd ever anticipated. If you want to see some great work here are some initial suggestions that I bet you'd enjoy just as much as your kids:

The New School:
• Skippyjon Jones
• Walter The Farting Dog
• It's Not A Stick/Box
• Zen Shorts

And The Classics:
• Where The Wild Things Are (those that know me, know that this is an extremely important book to me)
• Where The Sidewalk Ends