I did a bunch of research and ended up buying this one: http://www.ainol-novo.com/ainol-novo...ram-white.html
This one is not what I would buy for myself but it supports all the games kids want. Flash, Skype, G-sensor games, etc. and runs the latest Android OS, as well it has a developer community for custom ROMS. The stock ROM has a bunch of Chinese apps included so it in important to flash a new one upon arrival. The Chrystal is an iterative update from the ELF II which was another popular well accepted cheap tablet. I picked it up for $115 delivered. This tablet was released end of Sept and the original hardware driver issues have been resolved.
There are lots of resellers. If a cheap tablet is on your xmas list, this is a great option.