If you haven't already figured out that the Internet is a place where you can see and find just about anything you want then take my word for it, you
Unfortunately, some of the material, OK a lot of the material isn't suited for young kids.  Actually a lot of it isn't even suited for adults.

If you're trying to be a responsible parent I've created a page with resources, including software, to help you protect your kids innocence for a few
more years. If there is one general rule I'd suggest you follow it is this:
Don't give your kid access to the Internet in a room or on a device
(iTouch or iPhone) where you can't easily monitor what they are doing.
 Keep the "Family" computer in the family room, kitchen, or
somewhere it's not private and hidden from view.  
Helpful Resources for Parents

FBI - "A Parent's Guide to Internet Safety"
Microsoft at Home
Keeping Kids Safe
Online Gaming Slang
FirstGov for Kids - links to Federal kids' sites
Internet  Protection for Kids - FREE!
Big Geek Daddy hasn't tried this program but it seems straightforward and should work
for most families.  If you choose to use it be sure to remember what password you use
to control the program!
 K9 Web Protection
Parental Control Bar - FREE!
Big Geek Daddy likes ParentalControl Bar.  It's provided free of charge to the public by
WRAAC.org, a non-profit organization dedicated to providing free, effective internet
control tools. Checkout  
Parental Control Bar
How to Protect Kids Using The Internet
Big Geek Daddy's Advice for Parents
McGruff Safeguard
McGruff Safeguard monitors where your kids go on the Internet including MySpace,
Facebook, and other Social Networking sites.  It monitors Instant Messaging, Emails,
and search terms used.  Bascially, this program gives you a very complete and accurate
picture of what your kids are doing online. Try  
McGruff Safeguard.
KidZui Browser - FREE!
The KidZui browser has access to over a million websites, videos and pictures with
new content added daily. Trained teachers and parents review content using a rigorous
selection process . This process ensures that your children will see content appropriate
for their age in terms of developmental level, reading ability, and interests.
Learn more about  The KidZui Browser
Taking a few minutes to unbundle your DNS service from your ISP's Internet connection
means a safer, faster, smarter and more reliable Internet experience for everyone in
your household.
Learn more about  OpenDNS
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Visit my PC Protection page for Free Security Programs to protect your PC from malware.
Download an Online Contract for your kids to sign outlining conduct while on the computer.