Not yet... still looking, on and off.
In the course of my search I found an interesting site at
http://www.kellscraft.com/textcontents.html
that has a lot of old fairytale books, but couldn't find it there either. I asked the owner of the site and they seemed nice, replying that they hadn't heard of it and wished me well in my search.

I have found lots of other cool sites with free books online... but still no luck with this particular story. I have a feeling it was in one of those old compendiums of children's stories. You know, thick volume with the embossed cover and Victorian line drawing illustrations inside.

I'll find it one day. :)