This site - http://moralstories.wordpress.com/ - contains lots of excellent Indian moral stories. They are very interesting and inspiring. They are grouped by main characters in the story and by the moral the story conveys. They also have stories in Telugu language with very clear and beautiful font.
I remember a story I learnt in my childhood. Once there was a dove which was chased by a vulture. In order to save itself the dove flees to a king and seeks his protection. Now the king is in a dilemma. It is his duty to protect everyone who seeks his protection but at the same time he shouldn't deprive the vulture of it's food. So the king pleads the vulture to accept some other meat instead of the dove. The vulture refuses to accept any other animal's meat except the dove's or equal amount of king's own flesh. The king happily agrees to offer his own flesh and starts cutting meat from his body and places it on a scale to weigh it against the dove. Surprisingly no matter how much of his flesh is placed on the scale the scales do not match. So the king finally places himself on the scale and offers his whole body to the vulture. Impressed by his charity the dove and the vulture reveal themselves as gods who have come to test him and bless him with gifts.
I did not remember the king's name and searched on the net and found this website in the process. The king's name is Shibi, popularly known as Shibi Chakravarthy. Of all the stories, I find the stories of kings most inspiring - Shibi Charkravarthy, Satya Harischandra, Raghu Maharaja, Sri Rama Chandra, Bheesma, Karna etc. My favorite is the story of Harischandra, more about it in a later blog. I strongly recommend everyone to visit that website and read the stories.