*UPDATE: Mrs. Lee's books are now available for purchase either individually or as a set HERE!
The Big Picture Story Bible... Instead of presenting a collection of stories, this book weaves the stories together- going into detail when needed and skipping details and stories altogether in other places, in order to present the Bible in a way that I've never seen it presented to children before... as one continuous story of God's big plan for His people, from beginning to end. I wouldn't use this book alone, as your only Bible story book, because as I said, you'll miss many stories. But I love having it, and I think it's a treasure when it comes to teaching children- small and big alike- the "big picture" of the Bible. Illustrations are abundant and colorful, which should help keep the attention of younger ones.
Children's Illustrated Bible... This is a really nice Bible Story book when your children are ready to move "up" from the previous ones I've mentioned. It requires a longer attention span than the previous books I listed and I'm thinking it would be good all through the elementary years. My Mom gave it to us because it's one of her favorites, and the stories are mostly accurate (not completely- but by the time you're reading this book with your child, they're old enough for you to begin discussing that we must carefully compare something man has written with the true standard before accepting it, and there will be places throughout this book to do so as you correct the text as necessary.) It's got a lot of neat, life-like illustrations as well as photos of real geological finds and other extras in the side margins about the time and culture surrounding the story. It does have some graphic illustrations, so obviously you'll want to review it yourself before deciding if it's age-appropriate for your child. (FYI: I linked to the 8x10" version of this book; there's also a mini version available but do NOT get it because the print will be way too small!)
Another post you may be interested in is Stick Figuring Through the Bible, which is a great way for children to begin making their first bible timeline.