My kids love the Wiggles books. We have several different varieties with letters and numbers. Even animal books that teach the kids sounds. They are super cute and we have worn a few out and had to throw them away... Not easy to find around here anymore either.

I know what you mean about the wiggles books. we had 4 wiggles board books and they have eventually had to be thrown out because they were breaking. we have one more wiggles book about going to the beach that i have to read to ds's every single night. Trace's other favorites are Are you My Mother?, How I became a Pirate and Arthur books. Blake likes the Barney books and the ones about animals. Kassie has finally graduated up to the Baby-sitters club series (YAY!-- I have almost the entire series from when i was younger). we love books around here.

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Jessica
Wife to Joel since 2002.
Mommy to Trace since 2005, Blake since 2006 and bonus mommy to Kassie since 2002.

My 3 year old loves:
Clifford
Dr. Suess
Bob the Builder
Veggie Tales

My DS loves:

Eric Carle - The Very Hungry Catepillar, The Very Grouchy Ladybug, etc.
Anything Thomas the Train
Books about cars, trucks, planes, or trains
The If You Give a series (If you Give a Pig a Pancake, If you Give a Moose a Muffin, etc.)