Online Stories to Read
Book-Pop.com
Highly recommended website with stories written by Stephen Cosgrove. The stories here are exquisite -- include lovely music and are professionally written and drawn. The interactive games are delightful. Flash or basic programming options.
Aunt Bee
Stories about colorful animals

Stories to Read Online
Here is an extensive collection of children's stories organized by age. Check out the link to the stories with audio. From Australia.

Dream Box Story Box
Especially created for online reading.