anyone know a place that I could buy a christmas ornament kit that takes a school-size (wallet) picture? I seem to remember they were made of plastic and pretty ugly, but they hold a spot in my heart and would like to make one with my kids' school photos.

I haven't seen any like that, but I did see some at the big box stores made of foam that hold pics.

This site has a bunch of picture frame style ornaments.

http://www.ornamentshop.com/