Some lovely and original interpretations of famous stories in art:
See some more of Christian Jackson's work at http://www.squareinchdesign.com/category/childrens-story-posters/
And here's another artist's interpretation of some famous stories:
See more of Eugenio Recuenco's work at http://silentstoryteller.typepad.com/blog/2010/04/eugenio-ruenco-fairy-tales.html
William Blake is one of my favourite artists, and I've often wondered what he would have come up with if he'd illustrated classic children's stories. Sometimes his illustrations to his own work suggest the possibility of stories other than those he intended. That's often the case for me with artwork: a brilliant, intense or disturbing image will seem to call out for a story to go along with it, and sometimes that's how I begin my stories, with nothing more than an image.
Surreal art in particular lends itself well with this kind of story-generating exercise, such as the work of Polish artist Rafał Olbiński, one of whose paintings was used as the cover art for the American edition of my novel Salamander.