We were captivated by Loud Crow's first digital rendition of a Beatrix Potter story, PopOut! The Tale of Peter Rabbit, and this book [iTunes link] is no less charming.
The original text, illustrations and naturally interactive pop-out features from early editions of the book -- think pull tabs, spin wheels and hinged appendages -- have been beautifully adapted for the iPad's touchscreen. The tale is set to soft piano music and read in a pretty English voice. Click on animals to make them fidget and chirp; tap on the onions falling out of Peter's bag and they'll blow up and move around the screen. Every page is alive with opportunities for engagement.
Check out a preview of the book below. A downloadable version is available for $5.99 in the App Store.