Asda do some great photo gift ideas. For my dad and my fil i've got the both a mug with a picture of all their grandkids on (for my fil it's just my 4 as they're his only ones) DH has got one too with all our brood on. They're not overly expensive either. Asda do t-shirts, jigsaws, mouse mats, keyrings etc all with any pic you take in or upload on their website. (I sound like I work for them, which I don't :lol

I've gone down the usual dvd cd route and the stuffed toy option before.
I also make my own father's dad card. Last year it was a pic of the 3 wise monkeys, each one represented by one of my kids. Not sure what to make this year with 4 of them
There was a little girl, who had a little curl, right in the middle of her forehead. When she was good she was very, very good, but when she was bad she was horrid.