I knew Ryan, my 8 year old nephew, would want to try spool knitting. I brought the Clover "Wonder Knitter" and the Susan Bates "Knitting Knobby" for him to try. Natalie, 5 years old, wanted to experiment too, but she found she had more interest in cartoons and Beanie Babies.
The Susan Bates model makes a more tightly knitted scarf. Blog-reader Janey pointed me to this pattern for teeny tiny hats. I cast on a few less stitches to fit a wine bottle. Now I'm really cracking up! I've already made three hats.