I've loved this film ever since I saw it as a kid in the early 70s. Having just happened to catch the second half again (it was on telly in a random pub) I knew I had to have it. Anyway, this is as good as I remembered it: Talos the bronze giant, the wonderful Hydra and, of course, the skeleton army, whose six minutes on screen comprise the best animated fight scene ever. Hercules, the undefeatable strongman of legend, is presented as a flawed human being rather than a perfect superman, and other characters are not all they seem at first. The king of Colchis also has an animated false beard, which is rather distracting, but this and one or two other minor quibbles don't get in the way of this classic slice of family entertainment.
There are a couple of Ray Harryhausen-related extras on this DVD - John Landis interviews the great man about this film (11 minutes), and there's an hour-long biography that covers much of his work, including clips from his early fairytale animation series (available on Ray Harryhausen: The Early Years [DVD], Sinbad films and some excellent storyboard drawings, culminating in footage of Harryhausen receiving his Oscar in 1992.
In a nutshell, your kids will love this film, and so will you.