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Teaching Reading and Language Arts Using the Internet http://www.magickeys.com/books/ - this web site is great for reading online fiction stories.
http://www.storiestogrowby.com/ - this site is fantastic to use during a fairytales/folktales unit. It has links to different tales from around the world. It is also an excellent site to use when learning about different cultures.
http://www.sundhagen.com/babbooks/ - this page links to an adlibs page that enables the students to enter in different nouns, verbs and adjectives to create their own story and then the story has the chance to get published on the website.
http://wiredforbooks.org/kids.htm - this is an amazing site that has online Beatrix Potter books and illustrations. It also has Alice in Wonderland and many Grimms Fairytales.