If you've been holding out for a digital camera for little kids that actually takes decent photos, then it seems Fisher Price has stepped up. Check out the Fisher Price Kid Tough Digital Camera with 2-eye-viewfinder, LCD preview screen and $70 price tag, it seems like a perfect fit with a reliable maker. For slightly older kids, check out the Kodak Easy Share digital cameras. Amazon is selling the Easy Share C300 3.2 MP for $80.
Also at the Fisher Price site, there's a Kid Tough FP3 music player that has potential, though I've heard great reviews of the Disney MP3 Mix Stick, sold at Target, Wal*mart and other spots too, starting at $50.