J.D.
one thing I've read is that you don't want to have games where there will be winners and losers for this age group!
these links should give you a few ideas!
http://baby.lovetoknow.com/wiki/Toddler_Birthday_Party_Games
http://toddler-birthday-party-ideas.com/ToddlerBirthdayPa...
http://www.amazingmoms.com/htm/partygames.htm