with the economy the way it is...Christmas is going to be "useful items only" for many people!
Try to find what YOUR area would most likely buy.
Elderly will always buy for kids first..them selves last..but do think of them.
Walker bags, small lap throws, pocket tissue holders. Avoid anything with buttons!
For kids buy some coloring books at the $1 store and make the cloth covers for them where they can also store 8 crayons!
here are some sites to check out!
http://www.sewing.org/html/charitysew.php
http://www.freeneedle.com/
http://www.coatsandclark.com/Crafts/Sewing/Projects/
There thousands more...but this is a great start!