Instill the joy of reading in your child.
Three Tales of My Father's Dragon, Frog and Toad, Magic Tree House collection 1-8.
I would recommend Winnie-the-pooh songs and story CD. We found a copy at the library and my 3 year old loves it. It has many of the songs from the movie plus a story. The voices sound identical to the movie. I guess that's not technically an audio-book, but it is something to listen to.
Yes! These are picture books, so they're short, but so fun and well done! Epossumondas Saves the Day, narrated by Coleen Salley. Giggle Giggle Quack (and others) by Doreen Cronin. I've also had preschool teachers recommend the recordings of Junie B. Jones books and Hank the Cowdog. The Nate the Great collection might be a good choice, too!
Thank all of you SO much for these recommendations!
We just got back from an 18 hour road trip and my 3 and 5 year old daughters loved these: Frog & Toad, Lily's Big Day (and other stories by Kevin Henkes), Mouse Soup, Madeleine, and Epossumondas.
My 4 year old has loved The Complete Beatrix Potter, Winnie the Pooh, Frog and Toad, and Little Bear on audio CD. My son liked the Magic Treehouse books on audio at that age, and he also loved Paddington Bear around that time.
My 3.5 year old loves the Mercy Watson (by Kate DiCamillo) audio books. She is also a fan of the book/CD combo of A Bad Case of Stripes (David Shannon) - we listen to that over and over.Cheers and good luck!
I'd go for audio book versions of books your kids is already familiar with. It might seem extravagant to buy audio copies of what you already have in print, but with my youngest that's what worked really well.