My girl enjoys learning Chinese Characters by watching the Magical Chinese Characters animation at BetterChinese.com, a site that teaches Chinese to kids in a structural step by step spiral up curriculum format. The Magical Chinese Characters animations are beautifully illustrated animations in black and white. They are kind of like stick man figures, very cute. There is a short story line with each animation. The story ends with the formation of the Chinese Character.
She likes to watch them over and over again and in doing so, she learns some new Chinese Characters. I let her choose what she wants to watch by herself. It is easy because the Chinese lessons are structured for kids who are learning Chinese in a non-native environment. She can select what she wants to watch/learn by clicking a list on the left pane of the screen. The list is in English, not in Chinese as most Chinese learning sites would be. This helps us tremendously because we don't know Chinese yet but we are learning.
You can go for a free online trial if you want to know what I am talking about. Oh, I almost forgot, for my blogger friends living in the US, there is a current free shipping promotion for orders above $50 by UPS Ground Shipping that runs till Nov 15, 2007.