hi, M.,
i've received/given lots of wonderful baby gifts. some favorites:
a basket filled with favorite children's books. (i'm sort of a collector of these, so if you want suggestions, i'm happy to help.) put a note or at least your name/date inside the book for an added personal touch.
a homemade blanket for my son was/is a treasure. my friend simply purchased a super soft flannel in a cute cowboy print and a nubby texture white chenille for the other side. even if you can't sew, you can stitch two rectangles together and create a one-of-a-kind meaningful, useful gift.
a personalized backpack in soft fabric, bright colors. easy to find a place to embroider the name (once that's been decided). mom can use it early on, and baby can use it later to carry toys, treasures, books, etc. :-)
after the baby's born: a plaque for his/her room that's been handpainted with the baby's full name, birth date, weight, etc. and a sweet, simple design to match the nursery. i LOVED receiving this for my firstborn.
the book "sign with your baby" by joseph garcia!!!! i give this to EVERY new mom. it is amazing.
the book "the baby whisperer." fabulous.
the book "the girlfriend's guide to pregnancy." a laugh-out-loud awesome book. i've never met a mom who didn't love it.
give her these books along with a super comfy pillow.
a gorgeous growth chart for the baby's room.
a special "tooth fairy" pillow with a pocket for the tooth. never too early to appreciate such treasures and tuck them away in a drawer for later. high-end baby boutiques usually have these.
a disposable camera with printed instructions to take a photo of the baby EACH MONTH IN THE SAME LOCATION for baby's first year. this is a wonderful way to document that first incredible year! everyone has loved this suggestion.
beverly's suggestion to give them a TREE is awesome. we did this for each of our two children. each of them love looking at and talking about "my" tree. i suggest something special like a flowering cherry or a gingko.
it really is better to give than to receive.
have fun gifting, and God bless!