Agree Veggie Tales are awesome.
If you're looking for something more traditional (eg not having to explain that there were not talking tomatoes in the actual Bible

), I like the NEST Entertainments Animated Stories the Old Testament/New Testament. (Directed by a guy who used to do Disney animation- hey, relevant to the board and everything!) I'm a Christian Ed director and regularly use them in my classes. I like that they are "gentle"- stories all there, but age appropriate for younger viewers. I use them for up to third grade. (My older kids claim they are "babyish", well they say everything in Sunday school is, lol.)
I have not been able to find them on Netflix (though please look, let me know if you can find them!) Unfortunately, they are pretty pricey to buy. You may be able to find them at a library/borrow them from a church. I lucked out someone donated most of them to us. (phew!)
Nest's website:
http://www.nestentertainment.com/animated-stories-from-the-new-testament_s3719.aspx