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Great collection of kids apps! I've found that apps like Wheels on the Bus by Duck Duck Moose are fun AND educational for kids. All great suggestions! I also recommend parents check out the information on kids apps available at: http://www.iphoneandkids.com
It's a great online resource for iPhone/iPad/iPod Touch info!
This is a great slideshow of app - Shrek Kart looks brilliant!
I recommend the Peppa Pig apps. My kids love them, and they're educational and fun. Holiday and Sports Day are the best.