I would also suggest fabric memory games for young children. I got the idea from
http://fishsticksandfries.com/blog/?p=302 and made two sets last year - one for my DS and one for a friend's. I fussy-cut a bunch of juvenile prints for the images, used an old flannel sheet for the "batting," and used a mottled flannel for the backing. Then I used the same mottled flannel to make a drawstring bag for storage. Even though we already have a regular Memory game, this one has gotten TONS of use. In addition to being a memory game, it's been used to make "sandwiches," as confetti - you name it. My DH has commented that it's one of the most versatile toys I've made for our kids.