In reply to goldmember:
A discovery we made that wasn't around when I was a toddler is the Julia Donaldson/Axel Scheffler books. Not just The Gruffalo books, tho they're great; check out esp. Tiddler, Stickman, A Squash and a Squeeze, Zog, etc. Both words -- great rhyme and rhythm -- and pics (oddly influenced, I'm sure, by The Furry Freak Brothers/Sheldon) are fab. Books by her that aren't illustrated by Scheffler aren't so good, imo.
Where the Wild Things Are/Sendak is still a favourite.