Penpen Chinese Levels
The files on this page have been created for use with the program Penpen created by Coolest.com. Basically, it's a matching game which provides an alternative method of studying Chinese or Japanese characters- check out their site for more info.
I created files based on the textbooks 'Practical Chinese Reader' (Book I) and the first half of the textbook 'Beginner's Chinese'. The main versions are in Simplified characters (as this is what the textbooks used), but I have also made Traditional character versions (which unfortunately may not be 100% accurate though because the textbooks do not always show traditional versions). I've tested most of levels so there shouldn't be too many mistakes, but it's possible that typos may exist (more likely in the later PCR levels because I have not used these much).
As for actually using the levels, you're going to need a Chinese font with a reasonable number of glyphs as well as a Unicode font (or just a Unicode font, if you have Arial Unicode MS). If you don't have anything else, the basic Chinese fonts SimSun and MingLiu should work fine.
As for a Unicode font, this is needed to display pinyin with tones. Windows XP has several Unicode fonts included (I like Lucida Sans Unicode), and you used to also be able to download the Arial Unicode MS font from Microsoft's website, but apparently they now only distribute it with Office. If you have it, you can use it for the Chinese as well as the pinyin.
Practical Chinese Reader Book I