I often introduce the holiday by reading a childrens book, I Have a Little Dreidal.
My children were very attentive to this story, and were excited to play with the small wooden dreidal which came with the book.
I set up a small center with the dreidal and used the timer for awhile to make sure all the children who wanted a turn would be able to get one.
Here is a lovely version of the Hebrew song, Hineh Ma Tov. This song is not a traditional Hanukkah song; it is sung as part of Shabbat. However I think that it so beautiful, I thought it would be good to use. Hineh Ma Tov can be translated as, "How good it is for brothers and sisters to live together in unity." This video is part of Matthew Vaughan's, You Tube project Rise Up Singing. I think you will enjoy listening to this!
But, I do like making handmade gifts, and working right up to the very day, has often been abit of a tradition for me.
I found that the kind of yarn makes a difference in how the crocheting goes, and some I enjoyed using more than others. I also thought of a few other projects I might like to work on.