I was given a copy of this recording as a child and recently re-purchased on a whim of nostalgia. It is simply perfect. The piece starts (as it continues) with a wonderful little dialogue between the narrator and Bilbo (as Mr. Baggins continually interrupts), and this kind of twee charm pervades the whole recording. The voices are wonderful - Thorin and Gollum my favourites - (if a little biased towards the Welsh), and whilst the pronounciation is never purist-Tolkien (Ghan-dahlf, being a particular amusement), the whole piece is presented with such love and care that I can't help but praise it.
This isn't bombastic Jackson, or epic adventure, but for all that it is much more faithful to Tolkien. It is a true children's tale, and very, very English.
Buy now, listen repeatedly, love forever. Honestly.