I just got my ipad2 yesterday, so I have yet to find the best apps for kids. Would definitely suggest you get iBooks (and kindle and nook, too - that way you can search each and get the best prices!). My daughter will be 4 this August and she LOVES reading books together on the iPad. The pictures look great and she loves turning the pages. I'm still looking at apps for kids too so I'll let you know if I find any good ones. Games like pocket frogs or angry birds might be good. 3D Brain is great for educational purposes -for all ages - I use it on my iPod touch for my anatomy class and it helped, and my daughter likes it as well! Post if you come across any good apps as well, I'd love to hear what you find!