MY son has read and re-read the translations/re-tellings of the Iliad and the Odyssey by Barbara Leonie Picard. They are brilliant, fantastic, especially the Iliad. Completely accessible to an eight-year-old, but not at all patronising or over simplifying. Enjoyable for an adult or older child as well.
The heroism and combat, mixed with the petulant childishness of the main characters, makes the events really gripping for a child (I only have boys so I'm not sure how much girls would respond). And the passionate friendship of Achilles and Patroclus means that the Iliad is about sensitivity and love as well as really big spears.
Want to recommend these books to high heaven. And in return, can anyone recommend a really good children's re-telling of the Indian classic legends -- esp the Mahabharata?