V.A.
I just did a Mother's Day project/gift with some students yesterday and today. I bought plain dish towels (I prewashed and ironed them) and had/helped the students put their hand print in one corner and then we stenciled/sponge painted a butterfly (another simple shape or even a stamp would work) in the opposite corner. I used Acrylic Paint, let them dry, then used permanent fine tip sharpies (fabric markers work, too) and had them write their name by the hand print and in the opposite corner I wrote Mother's Day 2008. The towel shifts when you try to write on it so it needs to be held tightly while writing.
Then I ironed them to heat set the paint. I put a heavy paper towel over the paint, just in case, so I won't get paint on my iron. To wrap the present the kids will color on a white paper lunch bag to make a "gift bag"
Have fun.
V. A