The Boulder Daily Camera
The Boulder Daily Camera has done an outstanding job reporting on this story. They have written well-balanced articles going into great detail listing both what happened and the opinions of the school district as well as the opinions of those who support the experiment being displayed. The articles are listed in chronological order:
note: the older articles have gone off their web site
School removes science experiment
A black-white Barbie experiment causes waves
ACLU may sue BVSD
BVSD to review science fair rules
The Boulder Daily Camera Web Site

The Denver Post
Both The Denver Post and The Rocky Mountain News provided fair and extensive coverage. I am putting the Post first because it is first alphabetically. The first post story is also the story that went out on the AP wire and started the worldwide news coverage. The articles are listed in chronological order:
School reviews yanking of girl's racism project
Anti-bias policy linked to pulled science project
Parents, officials support pulling Barbie race exhibit
The Denver Post Web Site

The Rocky Mountain News
Both The Denver Post and The Rocky Mountain News provided fair and extensive coverage. The articles are listed in chronological order:
Science fair project booted
ACLU investigating Barbie science fair experiment
Doll project insensitive, principal says
ACLU threatens to sue Boulder Valley schools
Science fair project booted
The Rocky Mountain News Web Site

Other News Media
This story was repeated in numerous news media from msnbc.com to slashdot.com to NPR to the BBC. We haven't listed those links here because there are a ton, we probably don't know about most of them, and the one local paper and two regional papers provide comprehensive coverage of what happened. That said, it did make our daughter feel good when she was invited to appear on the Today show.