Yeah I echo books. They just eat them up. We went to the library today (I have 2) and took 16 books out. Within 2 hrs we had read them all at least once, some of them even 2-3 times.
As for authors, for your general age, anything by Sandra Boynton is usually pretty good (snuggle puppy or barnyard dance). We've recently come across the author Nick Bland - he does one called the very cranky bear; its great. Might be a bit old though for your age range. Cannot go wrong with books though...even target them to things they are interested (in our case right now one is trains, for the other its ducks).
While its nice to give something "tangible" another great gift is an activity. Whether that means you paying mom and dad for their swimming lessons or whatever, or even just taking them out and doing something with them that they love.
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