What is Claymation you ask??  Claymation Studio is a super fun way for you and your kids to make stop-motion movies using your digital camera, webcam, or camcorder through your computer.  (Check out the YouTube video here!)
I'm always looking for fun ways to entertain my 7 year old on the computer, but still giving him the learning environment he needs at all times.  Claymation Studio is perfect for his age, it keeps his imagination alive while he creates away!

Also from Honest Tech, convert all your old VHS tapes into DVDs using your computer!  Quick and simple, I so need this for my wedding tape!  AND they also have (along with so many more techy things), an Audio Recorder to transfer your old cassettes over to MP3s or audio CDs.  You could make that "technical" person on your list very happy this year just by shopping at Honest Tech!