How can you fix up a wood swing set?

We just bought a house and it has an older wood swingset (which I hate the wood), Whats the best way to get that new look back again, is there any kind of coating I can put over it so the kids can't get splinters? Any suggestions on what to put on the pieces of wood that they use to climb on to the slide (they are not steps, just like wood slats) so they don't have to put their feet on the wood itself, I would like to cover the whole wood platform on the top of the slide with something too.

Weathered wood is not able to be restored. The process cannot be reversed. A good sanding with an orbital sander will reduce splinters. You might consider painting it, which will also reduce splinters. I would look into replacing the slide if it is in bad shape. Any peel and stick products will not weather and look very bad in a short period of time. If you do not want to paint it, try a good wood sealer or a danish wood oil after sanding. This will keep it from further weather damage and will need to be applied each fall season. I hope this helps.

power wash it , then replace anything that is worn out, tighten up everything, then seal it

AT your local improvement store you can find a sticky back stuff that looks like sand paper for steps. They also make a rubber with sticky back. The wood they put their hands on, raisl etc. I suggest sanding a bit, use a good protective base coat and then a couple of coats of outdoor sturdy paint.
Should look great when done. Remember when painting be creative not plain. Be creative with the sand paper stuff too cut it into shapes and such so the kids will enjoy it too!!!