One of my best friends recently had a baby, and my husband and I went to the baby naming. We gave her a little dress in 12-months-old size. (While we were looking at baby clothes... my husband got this "wouldn't it be nice if *we* had a precious little darling" look in his eye... *eep* I'm not ready to start having kids!!
)
I'm also knitting a baby blanket (not quite ready yet tho'
) If you knit or crochet, this is a great, inexpensive, from-the-heart gift to give.