We used the 3.0 “starter kit.” It includes 5 adventures, a bunch of pre-gen characters (Lidda, Tordek, Mialee, etc.) and a map with some tokens. I originally got it for $20 at Barnes and Noble but it is now OOP.

The pre-gens had all the rules printed right on the character sheet, so explaining the mechanics was easy.

We didn’t follow all the rules all of the time, but for the most part they enjoyed it a lot (They are little girls so they liked the magic and unicorns, etc. – go figure.)

I even humored my sister and let her GM for a session, and she had some pretty great ideas (A cursed magical fountain that lures people in with visions of Keira Knightley? Wow, why didn’t I think of that?)

There is also Faery’s Tale and even Og (same publisher). Faery’s Tale is written specifically as an RPG for children. I haven’t run it (my daughter’s just shy of 8 months old), but it reads very well.

I have always wanted to do the “Calzone Golem” adventure, and then serve up a big calzone at the climax. Mmmm…

http://www.amazon.com/gp/offer-listing/0786939354/ref=dp_olp_0?ie=UTF8&qid=1233248873&sr=8-2&condition=all

Something’s Cooking
http://www.wizards.com/default.asp?x=dnd/oa/20010413a

I think the biggest thing is to not worry too much about numbers. Just fill some things in for them after asking questions. “Is your fighter strong or tough?” “When a fight breaks out, does he charge right in or does he try to help others?” (give A or B type options) These questions are obviously aimed to distinguish between someone wanting to play a Guardian Fighter or a Great Weapon Fighter. After that’s determined, I’d suggest going with the default powers, feats and gear listed. Simplify character creation but let them personalize: “I don’t want an axe! I want a huge spear!”

Keep adventures simple. Let the players choose the mission/goal. That way, they have a stake in it right from the beginning. “Alright, mighty heroes. There are lots of adventures waiting for you. You’ve heard about the strange abandoned gold mine, the spooky ruined castle and the fiendish ratmen that come out of the sewers at night…” )

For an actual gaming system, I would heartily recommend Mouse Guard RPG. It’s fantastic for kids and adults. All of the morality lessons listed above come into play BIGTIME (in fact, it’s focused around them, in a sense), and there’s no issue with “the killing game” since you aren’t actually beating the snot out of things. Many fights end with a compromise or a complication. There are no hit points (so no damage is done), and failures at tasks only lead to “twists” in the story. I highly recommend that people looking to introduce kids to gaming check out Mouse Guard.