We have been using the Contemporary English Version, Children's Illustrated Bible (American Bible Society), for the past 8 years.  It is easy to read, has footnotes and introductions to each book, large print, and really nice illustrations--someone else mentioned this one.  We have also just gotten the new Common English Bible--Deep Blue Kids Bible to give to our elementary students (we don't have as many children right now).  It has lots of application notes and other features, although the print is smaller than the Children's CEV and it is more limited in the age group it targets.  I even have had adults ask to borrow the CEV, children's illustrations not withstanding.