Train Set for X-mas

A wooden train set. It was one of the best investments we made for our two boys. We found you get what you pay for in terms of the track. The more expensive track fits together much better and is easier to take apart and re-design. We used Brio track and the Thomas engines. He's a little young--obviously you will have to build the layouts and stuff for him, but by age 4 our older son was a track building wizard. It's a great item to add to gradually. We always had ideas for Santa and the grandparents for Xmas, birthdays, etc. Thomas engines were also used as potty training rewards at our house. When our younger son was born we gave our older son Donald and Douglas, the brother engines, as a gift for getting a new baby brother. Don't make a permanent layout by gluing the track pieces together. Taking it apart and making new layouts is half the fun and provides a lot of educational benefit.

There's a new thomas set out that is designed for the little ones it's big trains has no track, but has a "round house" or place for them to go. I can't remember what it's called but they have it at target.

Edited for spelling - I looked back at this and it was horrible!
My sons love their wooden Thomas trains. LOVE. Tracks are nice, but not necessary. If you don't get tracks, get some sort of carpet or tape to mark out a path for the trains. The Imaninarium brand from Toys R us is a little more cost effective than Thomas and still really good toys.
Re: bells & whistles - check out the TRUCE toy guide for 2011-12 - a lot of flash at this age is not necessary - the tried and true toys are best

My boys loved the wooden Thomas train set. We started with a basic set and every year for Christmas or Birthdays they asked for some more trains, or bridges, or a roundhouse. It was great because we were set for Christmas gift ideas for about 4 or 5 years. I really recommend the wooden sets. The quality is great and they continue to look good for years.

Wooden Thomas the Train engines and a carry case playmat would work for now. I just got these for my guy, they're recommended for 2 to 5 years. He can get more engines and tracks for his birthday in April and the next few Christmases. I like that the carry case opens into a small playmat with tracks and scenery printed on it.

I bought the Thomas Wooden Railway Steamies vs Diesels 4-pk/ @ Target and the Thomas And Friends Wooden Railway - Carry Case Playmat on Amazon.com. They're made by Learning Curve.

We bought our oldest a Melissa and Doug wooden set for his 2nd birthday. My husband picked it up on clearance after x-mas that year... and I was a little worried that it was 1) still expensive ($75), 2) more than we needed (it's a big set) and 3) he wouldn't love it as much as something flashier.

Well - fast forward 5 years and 2 more kids later and it is still played with everyday.

If you are making an "investment" in a toy that will be played with for the next 5-6 years, go ahead and buy a nice wooden set. The Thomas sets are crazy expensive, but if you buy a less expensive set to start (IKEA has a cheap one too) then you can add the THomas stuff one piece at a time as your child gets older. We still get pieces for birthdays/Christmas for my middle son (he'll be 5 next week).