Looking for a book?

Looking for a book I had when I was a kid. Probably early-mid 90s. It was a big book, probably the size of a school desk, with a handle, like a suitcase. It had a cardboard cover, with illustrations of a unicorn, elves, animals, etc. Inside was a whole bunch of stories that were separate, but connected. It started in a forest with animals, but there was a flood so they had to leave. Then they moved in with like gnomes and stuff. There were elves and sprites and a part with dragons. There was a story about a giant who needed to get a magic key back from a lake monster in order to open this treasure chest. There was another story about fairies visiting from the fairy queen and one of them was ugly and crippled named named Nettle, but she dove into this lake and become this beautiful mermaid. There was another story where the Giant took some of the animals and gnomes on a walking trip carrying these like...traveling hotels on his shoulders. No idea what its called. Anything?

http://www.auntbook.com/

FROM THE SITE:

Are you unable to remember the name or the author of a book that lingers in your memory from your childhood? Let Aunt Book help! Tell her what you remember about the book, and perhaps she can identify it. If she can't, perhaps one of her Dear Nieces or Dear Nephews (as she likes to think of the visitors to this site) can. Please note that Aunt Book identifies children's books.