One of the teachers I work with uses this series of books to teach Shakespeare to grades 3 and 4:
http://www.amazon.com/s/ref=nb_sb_no...r+kids&x=0&y=0
(Shakespeare for Kids).
I've been floored at how involved and interested they get. The children enjoy acting out the plays, learning about the period (there are some good resources on how horrible it was to live then), and, of course, reading the plays themselves.
Just thought I'd mention this fine series of kids books.
EDIT: This is at an inner-city school, btw, where over 40% of the students are involved with government services of some time (e.g., social services, welfare programs, etc)