The Disney artwork would be copyright and probably some of the story that is unique to Disney's adaptation, but the characters themselves are fair game.
The stories are, but not the characters as drawn by Disney, it's like classic music, you can use the Music commercially (given that you Perform I), but you can't use a performance from someone else.
Same with classic stories, you can make your own snow white story, but you can't use snow white as performed by Disney (yet)