Mormons recognize the Bible as holy writ. It is more than a "good read," it is scripture, and equal to the other scriptures in the LDS canon (Book of Mormon, Doctrine & Covenants, Pearl of Great Price).

That being said, there have been many translations of the Bible, and not all are equal. The prevalent translation in Joseph Smith's time, the King James Version, is good but not without its shortcomings. The LDS Church primarily uses the KJV, but for reasons of continuity and not because it holds that the KJV is more inspired or closer to the actual word of God than all other versions.

During his life, Joseph Smith was inspired to undertake a translation of the Bible to restore many plain and precious parts that have been lost over the years. He died before he finished this project (his successors have not been inspired to pick up where he left off, evidently) and the RLDS Church holds the copyright to what has become known as the Joseph Smith Translation. The LDS church prints Smith's additions and alterations in its KJV Bibles as footnotes and addenda.

For example, consider these two verses:

And the Lord said unto Moses, Go in unto Pharaoh: for I have hardened his heart, and the heart of his servants, that I might shew these my signs before him:

—Exodus 10:1, KJV

And the Lord said unto Moses, Go in unto Pharaoh: for he hath hardened his heart, and the hearts of his servants, therefore I will show these my signs before him;

Theologians over the years have tried to make sense of why the Lord would harden Pharaoh's heart in the Exodus story. Joseph Smith's approach to this problem was to reveal that this is in fact mistranslated from the original, and in this case he offered the correct (Mormons would say "inspired") translation.

Because Joseph Smith produced the other LDS scriptures directly, there are no such errors.