One thing that concerns me about many of the "Christian" materials for small children is that often they degenerate into moralism (do-good-ism).  I understand that a short book or film can only do so much theology given the time and length constraints matched with the attention spans and thinking abilities of their audience--small children.  Yet, I fear that too frequently they merely encourage children to be good rather than telling them that they're sinners in need of a Savior and only he can make them good.  While our children need robust biblical ethics (morals), they need to understand ethics in the larger context of the gospel. 

• They are sinners, rebels against God, who deserve nothing less than hell's flame lapping around them for all eternity. 
• God hates sin and pours out his wrath on all who stand against him.
• They cannot be good enough for God. 
• Jesus' death and resurrection are the only chance they have at peace with God. 
• Any goodness that flows from their lives comes after they have, by his grace, believed on Jesus, turned from their sin, and thrown themselves upon his mercy. 
• Then they will have his Spirit to enable them to live rightly unto their most holy and terrifying God, who will one day reward his children and bring unending torment on his enemies.
• They can know endless joy in this life and in the life to come after they have placed their faith in all that God is for them in Jesus.

Lord willing, in part 2, I'll provide some helpful links to resources.