This is an excellent question. I was just working on my gift list for this year... and I always struggle with both sets of parents.
Here are some of the things we have done in the past:
MIL - A woman's tool kit - just for her! (she asked for it actually!) Small tool box with screws, nails, picture hangers, a hammer, screwdrivers (phillips and regular), wood glue, staple gun, small square, pliers etc....
FIL - (he's a mountainier and does NOT like material things very much)... gave him software to create picture slide shows on CD (including music) from his digital camera (he really loved this one)
Gave him a handheld GPS and an REI gift certificate on other years.
Both sets of Parents - A "Cabin Fever" basket that I created. A large basket filled with small brain teaser games, playing cards, music CD's, regular 1000 piece puzzles, crossword puzzles, books, and a variety of teas, coffees, and snacks.
Last year we gave both sets of parents an "images of 2001" gift. DH and I compiled a CD slideshow of our adventures throughout the year, vacations, the garden, and DD at her various pony club, girl scout, and swimming lesson functions - all set to music. We also had a professional photographer take a family portrait last year - and provided that to everyone in an expensive frame.
I have also done a "dinner and a movie" gift... which consisted of a VHS tape (would do DVD now) of a good family movie, gift certificate good for their local theatre for admission, gift certificate for dinner out, and we threw in some microwave popcorn too!
I am drawing a complete blank this year though... so please keep the ideas coming!
