Meanwhile, here are some links to some easy yarn handicraft projects:
Weave a change purse
Make a yarn doll
Learn to finger knit (the kids at the school where I used to work *loved* this)
Learn to make pom poms
There are tons of easy projects you can do using the Nifty Knitter (scarfs, hats, etc). We have a Knifty Knitter, but for some reason I haven't used it too much. I did make a scarf last winter with it and it was super easy. Here are some links to Amazon to get you started.
I promise to check back in a few times this week with an update on my tabletop garden (which has some major growth now) and some ideas for crafting with very young children.