This picture doesn't look like much but this has been a treasured gift that my kids received. Ken's parents put together a CD full of stories that they sent to our kids. Ken's dad told bible stories on it (He added extra kid character's to the old testament stories and amplified them). Ken's mom told a story of her own creation. The kids love them.
You could also read stories and then give them the books to go along with it. Or kid's could make a music CD for grandparents. I am hoping that we can put one together for my Grandma who we don't get to see real often. This is a fun way to make long distance relationships closer.