HardCandy63: They are called latch hook kits. I have a dragon fly one right now. They sell them at Michael's and A.C Moore. IO don't know abput Joann's.
my aunt used to give me covered shoeboxes full of craft gear when i was little and i loved it! good present!
other fun things (who cares what they are for? kids will think of something):
-colored pom poms
-ribbons, fancy sticker tape (glow-in-the-dark, etc)
-big beads, small beads, buttons
-special markers (erasable, color change...)
-little packs of novelty crayons (glitter, dayglo...)
-scissors that cut scalloped borders
And maybe you could put in those things that are shaped ike zig-zags and are very colorful. Or they have sand art kits. Jsut don;t shake them. I learned that the hard way!