My 3 year old loved this movie. Of course, Dad sat with her and talked her through any iffy parts, explained things and answered any questions she had. As with any movies for young kids, know your child and watch it with them at least the first time.
This is a light, humorous movie that is great for kids. There are some things you will want to talk through with your children such as stealing (is it ever OK to steal?) and the implicit threats/violence. Some children will be frightened during the scene where it looks as though Robin Hood has drowned. This is a pretty fuzzy movie and has some scenes that will make your kids guffaw with laughter.