Two experiments explored the effects of reading digital storybooks on tablet computers with 25 preschoolers, aged 4-5. In the first experiment, the students' word recognition scores were found to increase significantly more when students explored a digital storybook and employed the read-aloud function than when they were read to from a comparable print book. Their comprehension scores did not change significantly in the two conditions. In Experiment 2, the same students explored digital storybooks with more animation embedded in them. The students listened to the read aloud function on the tablet computer and explored digital storybooks in both conditions, but in one condition a teacher guided the talk about the story. Contrary to expectations, the students' word recognition and story comprehension scores were higher in the independent condition than in the guided condition. One explanation for the higher word recognition scores when students were reading with the tablet computer is the effect of multimedia, like hotspots and/or text tracking. Although digital storybooks are not a substitute for adult interaction, these preschoolers learned surprisingly well on their own. The importance of digital storybook design, as well as what elements to look for in an e-book to encourage literacy learning are discussed.