R.J.
Another naysayer to those that say that a 3yo won't be interested.
My 3yo LOVED being read to from more advanced chapterbooks than he could read, and knew exactly where we were/left off.
The ones he loved to read himself were the Magic Treehouse books (lots of repetitive language). I stuck with classics; Swiss Family Robinson, Hardy Boys, Hitchhikers Guide to the Galaxy, Tom Sawyer & Huck Fin, etc. to read aloud.
I would think Charlie & the Chocolate Factory or Charolottes Web would be perfect.