S.H.
Perler Beads kits (look on Amazon. Even my7 year old daughter loves these)
Littlest Pet Shop
Craft Kits
Liv Dolls
Zoobles
Squinkies
Shrinky Dinks
tie-Dye t-shirt kit.
Games by the brand "Think Fun." My kids, like the "Chocolate FIx" game. We have many of games from this brand. Its awesome and promotes problem solving and creativity... its for adults AND kids. Barnes & Noble carries it as well as Amazon etc.
(NO, DSi for a 5 year old). Too young and too expensive. My Daughter, got her DS at 7 years old... but it was from my In-Laws... just because her TEN year old cousin, has one. My Daughter, hardly, uses it.
Leapster games (my kids are 4 & 7 and they still play their Leapster.)