The "Mother Goose Edition" of Bloody Basic presents a slightly simplified version of B/X D&D, tweaked to appeal to children (and adults!) who enjoy fairy tales. Characters are generated with the standard D&D ability scores, but in OD&D/White Box Swords & Wizardry style, the bonus or penalty from ability scores is never more than +1 or -1. Ability scores that have a bonus or penalty are also given a description - for example, characters with Wisdom below 9 are "foolish", while those with Charisma above 12 are "charming". These also provide a bit more fairy-tale feeling.
The races given are Human, Dwarves, Little Pigs (yes, you can play the three little pigs!) and Sprites - the last of which should appeal to many children.
The basic classes given are the Curtal Friar (imagine Friar Tuck as a cleric), the Fighter, the Magician, and the Knave (essentially a Thief). The subclasses begin to show more fairy-tale feel, with the Maiden, the Prince Charming, the Woodsman, the Jack, and the Pied Piper. There are several fairy-tale twists here - for example, the Knave has the ability to "Climb Beanstalks" (and other things as well).
Unlike the old D&D Basic Sets, this book gives information for the presented classes up to 6th level. Thus, you should be able to get in quite a bit of play before hitting the top!
Sixth level characters gain a retainer, and the table for those is also quite well-themed for fairy tales, with talking animals of a few sorts, Brave Soldiers, Rugged Huntsmen, Valiant Tailors, and even Wicked Step-Sisters and Fairy Godmothers!
Alignment is very different from the standard D&D system, but in a good way! Four alignments are given, each corresponding to a suit of cards. Each gives a bonus on attacks when fighting for something that corresponds with the alignment, and each has a temptation, which they must make a saving throw to resist when presented with.
There's a very simplified skill system, and brief but informative discussions of traps, wilderness, reactions, and dungeon and wilderness adventures. This is the only place where the fairy tale theming flags a bit, as traditional dungeons don't really seem to fit into a fairy-tale game. Something different might have been better here, with more of a 'how to structure a story' feel. Of course, experienced GMs shouldn't have any problem with this, but the section as a whole seems aimed at beginners.
The monster section comes back into fine form, however, presenting such creatures as Baby Bears, Mama Bears, and Papa Bears, Gingerbread Men, Pixies, Leprechauns, Green Knights (as in "Sir Gawaine and the ..."), Bogeymen, Big Bad Wolves, Hags, and even Rumplestiltskin-style "Yellow Dwarves". That's only a small sampling of the monsters supplied, though - the author uses a nice space-saving trick to allow the listing of many monsters in just a few pages, managing to present 86 creatures in about 10 pages without it feeling crowded at all. What's more, the method used also makes it easy to create new creatures quickly!
The book finishes up with a section on treasure, followed by a one-page index. The bulk of the treasure section is on magic items, which are very briefly described. Most are standard D&D items that happen to work well in the fairy-tale environment, but there are a few lifted directly from fairy tales or children's stories that are not normal D&D fare - for example, Ruby Slippers.
There are a couple of editing oddities - for example, the alignment section refers to saving throws vs. magic, but the system is using the Fortitude/Reflex/Will save system. It seems Will is what's intended. For those printing out the PDF, the fact that page numbers are all on the right side of the page, instead of alternating sides, may be a bit of a pain.
But these are mere trivialities. If you're looking to run fairy-tale D&D, or to introduce small children to RPGs, I think this is a wonderful product with which to do it!