There is a whole set of books where Roger Lancelyn Green retells classic stories -- Egyptian, Arthurian, Norse, Greek -- in a manner suitable for children. It's a good starting point. Then Hans Christian Andersen, the brothers Grimm, and Andrew Lang's multi-colored volumes of fairy tales.
Have you looked at Lamplighter Ministries in Mount Morris New York? They have republished over 200 books; most of the books were originally published in the 19th century and are full of character building stories. White Knights, Giant Killer, and others maybe exactly what you are looking for.