This describes my daughter (10 next month) If your daughter liked and dealt with the Chronicles of Narnia series she should be fine with Inkheart and Inkspell. Other favorites of my daughter in this genre are
Harry Potter - she's read all 7
Dragon Rider - Cornilia Funke
The Theif Lord - Cornilia Funke
Septimus Heap books - Magyk, Flyte, & Physick - she hasn't read the new one yet - all by Angie Sage
Eragon & Eldest by Christopher Paolini - 3rd book coming in Sept.
Redwall by Brian Jaques
Fablehaven by Brandon Mull
Leven Thumps series by Obert Skye
She did enjoy Kingdom Keepers, but has sworn off Small World now - LOL
Also on her sagging book shelf are lots of Roald Dahl books, she particularly likes Matilda, The Witches, The Twits, Charlie & the Chocolate Factory and Charlie & the Glass Elevator. She has some Spiderwick books but got bored of them after the first 3. Each one took her about an hour to read so there wasn't enough for her. She also does enjoy the American girl books - particularly the mysteries. Others that she's enjoyed are
The Secret Garden,
the Ramona series by Beverly Clearly
the Fudge series by Judy Blume (Tales of a Fourth Grade Nothing[U/], Fudge, Super Fudge, Otherwise Known as Sheila the Great etc)
The Phantom Tollbooth
Ella Enchanted
Clarise Bean series
Number the Stars by Lois Lowry
Harriet the Spy
My Side of the Mountain
The Hobbit by J.R.R. Tolkien
A Wrinkle In Time by Madeline L'Engle
She preferred the latter two as unabridged downloads to her MP3 player though.
Scrolling through the list she's got several that have already been mentioned on her summer list.
To the OP for your younger child - The Magic Tree House series is a lot of fun, also Amelia Bedilia and Curious George still delight that age. Those can all pretty much be independant readers. For read alouds we love E.B. White - Charlottes Web, Stuart Little, Trumpet of the Swan, the Little House on the Prarie series, Grimms Fairy Tales