For your daughter, she may enjoy Aladdin Chess or Majestic Chess. Battle Chess, while fun to play, its how my kids learned, does not really teach anything other than the moves and doesn't work on XP and Vista.
For you, hard to say, given your location there must be several chess clubs around. They can work with you and give you more direct advice. Possibly loan you some programs so you can see what you like and fits your needs.
Fritz & Chesster is great for your 8 year-old & actually will help you if you are a beginner.
I must say chessmaster is quite awesome. Although I'm not sure about an eight year old. I've played a version called "Chessmaster challenge" (maybe it's the same thing as plain old chessmaster) and it was very beginner friendly (the tutorials on chess). Maybe check out reviews on that and see what you think. Good luck.
Chessmaster is surely prepared for kids too. Funny looking chess sets, very easy opponents and lots of tutorials (how pieces move, basic tactics, basic strategy, basic rules for chess openings) can surely make first chess steps much easier. There are more difficult lessons for more experienced players too so Chessmaster should be helpful for a long time.
Strongly recommended. I learned a lot from it.
im novice too and i have a psp and i use chessmaster on the psp i dont know if this is the best but for me is a very good kind of chess game and also i can bring it with me whereever i go !
I have had 2 versions of Chessmaster- good software for beginners and even more advanced- enjoy
IrishMike 
Hi Sanjdip,
I'd definately go for ChessMaster for yourself and your 8 year old. Fritz is brilliant, but probably a bit clinical for a kid.
I have Chessmaster on the PSP and that is good too. Not the strongest engine for sure, but good enough for mere mortals.
Good Luck
I use Chessmaster in combination with books (there was a good beginner's curriculum posted here a while back I've been plugging through) and losing to my husband a couple times a week (though the losses are getting less ignominious, so I think I may be improving!). I'm thinking about getting fritz so I can get some analysis help with my OTB games, but in general chessmaster's tutorials, tactics puzzles, et al have been a great resource. Plus, it's inexpensive and easy to come by.
I'd have to agree that chess mentor is the way to go. I only started playing a few months ago and it has helped me immeasurably.
Chessmaster 11 Gm edition, for the pc is great for all ages, and it is not real exspensive like some other programs out there. i think i paid 20 bucks for it brand new at bestbuy.
Chessmaster is surely prepared for kids too. Funny looking chess sets, very easy opponents and lots of tutorials (how pieces move, basic tactics, basic strategy, basic rules for chess openings) can surely make first chess steps much easier. There are more difficult lessons for more experienced players too so Chessmaster should be helpful for a long time.
Strongly recommended. I learned a lot from it.
Yes i agree i have this game on my PlayStation Portable i highly reccommend it to anyone of any age. I also have it on PlayStation 2 it works very well and i have learned alot from it and i recognize patterns more easily and fluently.
I am a novice player but would like to get better. The puzzles on chess.com are fun but I feel I am just moving pieces by trial and error and not understanding what to do next. What is the best software to learn how to play well. Also, I am teaching my 8 yo daughter as well so a sw that would be fun for her would be good too.