Re: kids websites
For ages 6 to 10, the website that is talk of the town is http://www.Neopets.com .
The amount of time kids spend there and the addiction level is incredible. Apparently kids can adopt virtual pets and take care of them. It is generally fairly safe and fun site, though there are some message boards that have come up for Neopets, where you need to keep an eye on. I don’t think there are stories there.
A good starting point is http://www.yahooligans.com from where you can go to many kid friendly sites.