Little baskets and fill them according to person (e.g. relaxing night in little bottle of wine, few nice chocolates, scented candle) (foodie - little bottle expensive oil, sample pots good mustard and chutney) did these for a few years and they always went down well and cheap
get photos of Lo printed on mugs, mousemats etc - Asda do it cheaply
definatly photo idea - we always get a little photo album from my sisters each year - they put a few snaps of their Los in and we fill the rest through the year with other pics - so we've built up a collection of yearly albums
also something Josh did last year for my parents - a CD with the number 1s on from when we were all born, wedding days etc and a list with it saying what each event was, the date and the song