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A toy stroller is a great gift. I have a little boy and a little girl and I know a lot of men are against strollers for boys, but they love them and you can buy them in boy colors. It's great because as they are learning to walk they'll use it, and they'll use it for years to come to push it alongside mom or dad while walking to the park or push their animals in it when they get older. If you live in Manhattan, there's a store called Promises Fulfilled that can personalize it with their name on it (just permanent paint I think). They're not so expensive - at Promises Fulfilled they're around $20, more at FAO, less at some other stores.

mamamd

I bought my nephews wooden toy boxes with their names handpainted on for their 1st Birthdays. They still have them 8 years on in their bedrooms to house their toys and general clutter (I made sure the designs painted along with their names weren't too babyish so the boxes have grown with them).

My daughter got this wheely bug ride-on toy for her first brithday and is really enjoying it. It's a lovely design, very sturdy, and will be saved for her to pass on to her children.
http://www.wheelybug.com/

You can buy it online at many shops.

I second the toy stroller. I have yet to meet a kid that doesn't want to play with it right away. One year later ours is still a huge favorite. Don't leave boys out of the fun!

There are a lot of great suggestions here and I'm sure you'll find a perfect gift. Please don't be disappointed if your nephew doesn't pay attention to his great new gift on his birthday day - I've found that with all of my children that on their birthdays they tend to be a little over excited and strung out on sugar (especially if it's their first taste of cake - how can you compete with sugar?). Your gift is sure to become a favorite when the party is over. Have fun!

I know this sounds boooooorrring but, a book with and insciption (with the date!) from you would last a while. Particularly if you go with a classic Dr.Suess or Richard Scary book.

Radio Flyer wagon - the wood kind with the removable sides - is a great gift that they (and the parents) will enjoy. Plus, it's something they will have forever! I still have mine!

Here's a link for the Radio Flyer wagon...

http://radioflyer.stores.yahoo.net/mod24towcoun.html

His first train set...Brio or Thomas the Tank Engine. They are classic...kids love 'em...and it is something he can hold on to and hand down to his children someday. My husband is from Norway, and our children play with some of his Brio trains that he brought over to the US with him when he came here in the late 70's.

My son recieved the ATW Radio Fllyer Wagon and loves it. We do too. On the day of his birthday, the gift he really loved was a box of Kleenex. Silly yes, but pure entertainment for a one year old till the box is gone. It will be his favorite gift for the moment!

If the child isn't walking already, consider a push car or wagon. One year is just about the time they can start walking with support and if it's a wagon, they can enjoy it for a while afterward for pushing toys around. I'm thinking something like this: http://lib.store.yahoo.net/lib/radioflyer/11.jpg