Hey guys,
I just want to clarify a few things before you get too far into this months challenge. Remember that it is a character design assignment. Don't try to put all the characters into a scene. Don't paint a background at all (background can have a tone or texture if needed).
The big thing is to not try and re-write the script or change the personality of the characters. In other words, the original script should work with your characters too. Don't add sisters and brothers and pets, etc. Many of students go WAY too far in over thinking the problem and they get so complicated to the point that the story doesn't work anymore. Or, it becomes a completely different story. So watch out for that. You are basically changing the design and style, but NOT the story.
Here's some samples of how your work might look when submitted. Note: these are more "animation" style, but you can keep a kids books style or whatever you want. It does NOT have to be for animation (or have that "concept art" style). I've put some more "illustration: style characters at the bottom of the post.
Let me know if you have any other questions. : )