Kids

Club Penguin - Club Penguin is a "kid-friendly virtual world where children can play games, have fun and interact with each other."

Candy Stand - on line games for kids

Dress Up Games - dress up dolls, play games.

Gushers Re-do your Room - make your own virtual room.

HomeStar Runner - a popular site with kids and adults. Check out some of the "toons"

Nick.com - lots of free games for kids to play online.

Yahoo Kids - games and more. 

Other websites:
Elf Yourself- upload your picture and make yourself a dancing elf.