It is a great series by Jeff Smith. Scholastic is publishing them as graphic novels, making nine volumes from Out from Boneville to Crown of Horns.

 It starts with The Three Bone three cousins in the desert, after Phoney bone was chased out of Boneville after trying to run for Mayor, his campaign balloon chased the elders into a river and he built a factory next to an orphanage. They get separated and end up in Barrelhaven, a small village.
Rat creatures have invaded the land and they are being led by " the hooded one" who takes orders from the Lord of Locusts. The Lord Of Locusts seems to me an entity that represents the evil in their world. His attempt to become more powerful caused him to enter and corrupt the Dragon queens mind. She went mad and all the other dragons were forced to subdue her and drag her underground, trapping her in stone. Now he longs to be free and the hooded with the help of the "Awakened one" one can grant that.
The hooded one feels that Phoney bone is the Awakened one because he found his campaign balloon and he perceived him as a powerful being.

Aside from the serious story line, it is very funny, lots of humor between the Bones, Grandma Ben,Thorn and the rest of the cast. I will post scans up later.

I know all of that. I read the story. THX for asking.

 :)I never liked the original b/w art and decided not to buy the complete collection. The color in the more recent collection is amazing, and it adds more life to the stories.
 I agree that during Ghost circles it is started to become darker but it picks up its humor value in the next chapter... then it drops it in the Crown Of Horns chapter to truly convey the great battle. Great series nonetheless.

Warner bros bought the rights this year and it will me made into film series.

TIME magazine says it's "as sweeping as the Lord of the Rings cycle, but much funnier."

Cant wait for the film.
 

I picked-up the hardcovers in Black & White (except vol 3 - which I can't find and had to get in a trade).  That's how I read the original story and it was great!!

Now I am picking-up the hardcover scholastic books and plan to read them once they are all released.