The Girl Who Circumnavigated Fairyland In A Ship Of Her Own Making

Catherynne M. Valente (who has some great books out) is writing a children's story and posting it chapter by chapter online for free. It's called The Girl Who Circumnavigated Fairyland In A Ship Of Her Own Making. Only the first chapter is up right now, but it's a brilliant little gem, full of whimsy and the kind of logic that will make sense to you if you grew up with (and hopefully still have) your head in the clouds. I might go so far as to say this is children's literature as its finest and most original.
While it is free, you can donate if you like it and think it's worth it. Catherynne Valente is currently in a pretty bad financial situation, so I'm sure she would appreciate it.
There's also an auction full of absolutely amazing stuff (like gorgeous one of a kind, hand-crafted jewelry, critiques, rare books, and signed copies of stuff to name a few) to help her out over at adoptingcat.