Music for toddlers and parents?

My experience may seem heretical here. I played mostly oldies when my kids were growing up. Now they really like Sinatra, Elvis, the Fifties and the Eighties. They do listen to the latest and the "greatest" now and then but they have a healthy respect for the quality of past popular music. They did get some exposure to classical from movies and they did play in the school orchestra but nobody in either side of the family was interested in it. They also grew up witn Christian praise and worship music.
Play fun music so they can appreciate it in general.

One word of warning- the Night on Bald Mountain and Sorcerer's Apprentice segments on Fantasia scared the !@@##$% out of my 3 y.o. 16 years later, he still won't watch Fantasia.

Good point, Swampwalker, about "Fantasia" -- I can't recall how old my (now college-age) daughters were when they first watched it -- in any case, they were old enough to watch it fearlessly and repeatedly with delight.

And a few more to add:

Grieg, Peer Gynt suite (esp "In the Hall of the Mountain King")

Rossini, various overtures

A lively CD anthology called "Baby Dance: Toddler's Jump on the Classics"

my 4 y.o. daughter and i enjoy raffi quite a bit. the material is generally well recorded and produced, the songs are just long (or short, depending on your perspective) enough, and (imho) singing silly songs together is a great bonding experience. classic stuff.

i was also pleasantly surprised to find that a few of the discs we have from the late 70s were recorded by none other that daniel lanois (with him noted to be playing pedal steel guitar on one entitled "more singable songs").

Sara Hickman has some nice CDs made for both kids and parents that I have listened to extensively with my kids and given as gifts over the years - check out her website.
They Might Be Giants has some cool kids stuff out too!