buy some cheesecloth (or thin material), some pretty, thin ribbon, and some potpourri. make little sachets for the ladies.
use thin material and make handkerchiefs for the men.
make CDs with each person's favorite music on it.
and am i remembering correctly when i think you have a new baby? make a DVD of pictures and/or 30-second movie clips of the baby.
see if you can find a place that makes calendars for around $10 a piece, and make a 2006 calendar with baby pictures.
make homemade coupons (i'll babysit for free one night, i'll cook your dinner one night, i'll go drop off dry cleaning, etc..)
buy some cheap jars and make teas, or cookies, or hot chocolate powder. or you can measure out all the ingredients for some recipe (cookies, for example,) and put all the ingredients by layers in the jar. tie the recipe on the jar lid with a pretty ribbon and all they have to do is dump, mix and bake!
make some homemade stationery for people to use. all you need is paper, stamps, punch-outs, etc...or put a picture of the baby on the top.
snapfish has coffee mugs you can put a picture on...they have other stuff, too...keychains? little stuff for cheap.
i'll be thinking of more for you. i love this kind of stuff!