Stepping Stones -- Peter Pan, based on story by J. M. Barrie, adapted by Cathy East Dubowski, Random House, 1991.
I love J. M. Barrie's Peter Pan -- both the play and the story from the play -- but this version is not at all like J. M. Barrie's Peter Pan. Yes, it does tell the story of Peter Pan and Neverland, but in such a plain and dull way that all of the magic and intrigue is sucked out of the book. Also, the illustrations verge on creepy.
I will say, however, that this version of the Peter Pan story may be slightly easier or beginning readers to read -- slightly. If you do use this book, make sure to follow it up with the more exciting original version.