Someone on the Chinese forums pointed me to a nice link today; it's a condensed version of "The Lady in the Painting", which is in turn a condensed/simplified version of some old folk tale. They don't use that many characters; I've been reading along and feel it's helping my reading.
http://homepages.stuy.edu/~jrolle/chinese/lady1.htm
http://homepages.stuy.edu/~jrolle/chinese/lady2.htm
