<font color=navy>I've always enjoyed going to Knotts. It has a slower pace than Disneyland, and a charm all its own, in my opinion.
Beginning on Thanksgiving Day, or the day after, Knotts Merry Farm hosts a number of vendors selling crafts in the Ghost Town portion of the park. They charge a nominal price to enter this part of the park, and for additional $, guests can also get tickets to Snoopy on Ice (an ice show featuring Snoopy & friends in the park), and tickets to the Ghostrider wooden rollercoaster. There is also a 'barn' where kids can get a picture with Santa Claus and where they can make wooden necklaces and do other crafts. I go almost every year to this craft show mostly for the atmosphere. Knotts has Dickens carolers, as well as other entertainment during this time, and it's just fun to go.
People with normal park tickets will be able to go into any part of the park, and people with craft tickets can only go into the ghost town area of the park.
As for crowds - yes, there will be crowds on the weekends, but it's very doable.
If you like to try different foods, Knotts is famous for its fried chicken at the Chicken Restaurant (outside the park), and famous for its funnel cakes with boysenberry sauce. These are sold by the log ride and outside the gates in the shopping area.