Once Upon a Time Challenge

Carl has posted information about his Once Upon a Time Reading Challenge.  Here are the details:

"The Once Upon a Time Challenge will take place beginning Thursday, March 22nd (I’m late, per usual) and will end on Midsummer Night’s Eve, June 21st. It is a reading challenge to celebrate spring, the time of rebirth and renewal, by experiencing the type of storytelling that connects us with our past."

He has a variety of "quests" you can choose from, but I am leaning towards reading one book from each genre: Fairy Tale, Fantasy, Folklore and Mythology, to be followed up at the end with Shakespeare's A Midsummer Night's Dream.  Maybe I will get in a play yet!  As I generally don't read books in these genres I am a bit hazy as to what the difference between some of them is.  Carl has very kindly posted some reading suggestions.

I don't think I am going to have a definitive list of books I am going to read as I never stick with these lists (though I am wonderful at making them).  Instead I am going to have a few possibilities in each genre and choose as I go depending on mood.

Fairy Tale:

1. Stardust, Neil Gaiman
2. The Bloody Chamber or The Magic Toyshop, Angela Carter
3. The Goose Girl, Shannon Hale (YA)
4. The Ladies of Grace Adieu, Susanna Clarke (short stories)
5. The Princess Bride, William Goldman

Fantasy:

1. Over Sea, Under Stone, Susan Cooper (YA)--I think I have to read this one, so many people recommended it.
2. The Golden Compass, Philip Pullman
3. His Majesty's Dragons, Naomi Novik
4. Freedom and Necessity, Steven Brust and Emma Bull
5. The King of Elfland's Daughter, Lord Dunsany
6. The Stress of Her Regard, Tim Powers--This is out of print, so I requested it from ILL not sure I would get it and I received notice today that it is here!

Folklore:

1. Saints and Strangers,Angela Carter
2. Iliad, Homer--I want to read this this year...I wonder if I can squeeze it in during the challenge?
3. Italian Folktales, Italo Calvino

Haven't a clue.  I need help on this one.  Carl considers this a darker genre, and I am just not sure what book to choose.  I don't mind dark reads, but I want to choose something appealing and not just pick a title out of the air.  This is my hazy area.  Any suggestions? 

Edited:  I did get some suggestions--Thanks!  I feel better having a few books to choose from...may add a few more...

Mythology:

1. The Mists of Avalon, Marion Zimmer Bradley--I started this last Fall, maybe this will help me finish it!
2. The Penelopiad: The Myth of Penelope and Odysseus, Margaret Atwood
3. The Once and Future King, T.H. White
4. The Romance of Tristan and Iseult, Joseph Bedier

I have quite a few of these titles already on my bookshelves and the rest I should be able to get fairly easily from the library.  Now where to start?