Thanks, everyone, for all of the good wishes & the suggestions!

By coincidence, I had just found Librivox last week. A great site! I have written to them about possibly using/sharing materials, but haven't heard back yet.

I'm also familiar with the Gutenberg Project, but thanks for the reminder, Geoff.
Monique, the Public domain treasure hunter & your other links are wonderful. Thanks so much.
Thanks, Paul, for your original contribution! Love the tone of it.
Rapaire, you must be a mind-reader --- I have actually talked to a couple of the local children's librarians about contributing reading time to the project.

Bettynh, thanks for the recording links. That's one of the things I need to bring up at our next committee meeting --- whether kids' recordings/storytelling (and foreign recordings) are covered under our anticipated ASCAP license. No, we weren't going to use Talk Story Radio, but that is a great suggestion to take a look at their process. (We will be getting a lot of our programming, at least initially, from Pacifica, but the kids' programming will originate with us, and hopefully more & more of the overall schedule as time goes on.) Yes, I've thought of contacting storytellers directly to get permission to use their recorded works --- I imagine most of them AREN'T signed up with ASCAP!

I'm a member of the local storytelling guild & have a LOT of folktale/fairy tale books, but just a few published prior to 1923, which I've been told is the cut-off year for public domain material. Is this correct as far as you know?
I realize that many of the old materials are oriented toward older children (+/or kids back in that era were expected to be able to absorb more sophisticated language/themes. ~~~Run, Jane, run. Oh, see Sally run.~~~), but we actually are hoping to have stories suitable for a wide range of ages as there are a lot of home-schoolers in our area & we want to have a broad appeal for pre-k to teen.

With storytelling, one generally consults a variety of sources for the same folk/fairy tale & then tries to give it a twist or individual stamp to "make it your own." We'll be doing some storytelling, but no one has the time to work up 20 hrs worth of original takes on old tales each month, hence our reliance on PD stories for a good deal of the time required. ;-)

For those who are interested, here are some other sources:

One of my long-time favorite storytelling sites is
StoryLovers
http://www.story-lovers.com

Three I have found while searching PD material online:

Baldwin Online Children's Literature Project
mainlesson.com

Children's Books Online: The Rosetta Project
childrensbooksonline.org

ORLANDO: Women's Writing in the British Isles from the Beginnings to the Present
http://orlando.cambridge.org/svHomePage
Unfortunately, this last one is a subscription service, but writers' names & some titles of works are accessible, so one can probably use it as a source to find the actual texts on another site.

Thanks again to everyone who replied.