My friend Janelle sent me a link to this product last month (Thanks again, Janelle!) and I think it makes a fabulous gift idea.
IlluStory is a complete kit to help a child compose and illustrate his or her own book! The lucky boy or girl can create a story along with pictures, design a cover, and write a little biography about the author (themselves!). Send in the materials in a postage-paid envelope and in just a few short weeks they receive their professionally publish book! No additional costs, everything is included with your kit purchase.
The suggested age range is 6 - 9 years old which is a little too old for my daughters, but this gift idea has already made it onto my Christmas 2011 list!
Find IlluStory Make your Own Story Kit on Amazon, priced at $19.95.
Have a budding artist on your list? They also make a kit for turning a drawing into a 24"x32" Museum poster! Find Creations by You My Masterpiece on Amazon, priced at under $20 also.