First, I saw a post on Craft:Magazine for home made lip balm which inspired me to update my home made salve howto. See my howto here. The salve is smooth on the skin and makes a great holiday gift. See the book Earthly Bodies & Heavenly Hair for more recipes.
Second, we made a walking stick as a family project. My wife found the perfect piece of wood, the kids woodburned pictures, I did the sanding and made a macrame handle. See how we did it here.