It wasn't until around the time Natalie turned two that I really started to have a love for crafts. 

For crafts related to specific children's book titles, look under my "literacy tie in" tag / label.  At this time (May 2012) there are crafts for Piggie and Elephant, Mouse Paint, and Clifford.  Also, I try to add books to read that relate to the crafts in all posts. 

Here is a link to my favorite craft items.  

Things You Can Make for Your Kids: (older kids could make these as well)
Needlepoint Blocks
Yarn Octopus
Ziplock bag book (content can be so many things!)
Memory Board
High Contrast Designs for Newborns
Super Easy Baby Blankets
Bubble Solution (water, dish soap, corn syrup or glycerin)
Box of Princesses (A friend of mine shared this with me.  She made her's even cooler by adding boys, like Superman, Spiderman, a pirate, and a knight!).
Pirate Hat (video)

Things to Make with Your Kids:
Paper Plate Food
Fall Crafts: Halloween, Thanksgiving
Winter Crafts: Christmas, snowmen, Valentine's Day
Bugs! (many ideas for butterflies, bees, ladybugs, and more)
Clown Hats
Super Easy Crafts for Fine Motor Skills!
Play Dough
Stained Glass Jar
Paper Flower
Fun with Dry Pasta
Plastic Easter Egg Animals
Paper Plate Turtle
Nick Jr crafts (character paper dolls, shirts, Ho Ho's kite, Twirly Whirly Flyers)
No Glue Collages
Glue it!