Thanks for the link Daddude.
Well the verison of the Bible it up to the parents, there are many version, names, religions that have their own Bible so that is up to the individual but I can tell you that we use the KJV, but the kids versions of this has been out of print, however, there are the NKJV that has a great Bible for kids, teens, and pre-adults that targets just that age. There is also a book published that I got from Dollar General store about the Bible. It has tons of great resources and great content about what is in the Bible.
As far as reading the Bible, we just read the scriptures then we read a story to go with the scriptures, or also we have purchased Nest Entertainment curricula on video on the entire Bible for Kids thats ia animated but looks like real life.
My 4 and 3 year olds understand the basic details of the content just fine by just reading the scriptures and then telling a story. We use tons of free resources as well like
www.dtlk.com/bible and daneillesplace.com and many others.
If you think that just reading the Bible to your children is a waste of time, it isn't. It does pay off. I have a few children at 7 can recite and tell you what the scriptures mean in paraphrase and tell you where they are located in the Bible, and show you. However, i do have some that doesn't do that well so I use worksheets and visuals to reinforce the story, show a video, etc. to help that child understand. Using visuals, posters, story cards, videos, flannel boards, etc. does tremendous. We even use flashcards for 6 months old of the Bible characters.
A good curriculum that I use is
www.hubbardscupboard.org and I have created curriculum in another post free to download, and there is another post with Bible resources from many members.