Another suggestion - I Spy quilts. There are some great designs and child friendly quilts based on the travel game, "I spy with my little eye a______". Trading the charms is interesting. There are several venues for trading the charms, including one on the quilting board. We just completed a swap a couple of weeks ago. RBWiese hosts the swaps.
I contributed 8 sets of ten different fabric charms and received back 80 (mostly) different fabric charms. I've participated in swaps of ABC fabrics, which you not only play "I spy", but you also play "find the charm that starts with Y". On the yahoo group, we just did a swap where you sent in matching sets. On that one, you have two charms that picture a particular object. An example is penguins on icebergs and penguins singing. The child has to find the matching ones. Some were the same image in two colors.
Just google I spy quilts, and you will get some great samples.
bkay