Ticche & Bea has some great craft kits available including one that lets your kids design their own doll, and another that lets you sew your favorite baby clothes into a keepsake quilt.
The Quilt Kit is really nice because the kit comes with everything you need to make the quilt in one afternoon. But...if you're still wary, they'll even make it for you if you send in your favorite baby clothes.
Their new Design a Doll kit includes an 80 minute DVD showing exactly how to make the doll. Your child will choose the hair, and learn to sew the facial features, an A-line dress, and pants.