Drawing For Children
Drawing for Childen is a free drawing program for children with many nice options. You can draw with many different pens, you can put stamps on your drawings, create all sort of text effects, and much more. The program is suitable for very young children and has a child mode especially for them. But it also provides lots of fun to older kids. It is used by hundreds of thousands of kids all over the world. The best way to see what is possible is to simply download it and install it. Remember, it is free.
Drawing for Children runs on basically any PC and any windows version (95 till Vista). For more information, see the readme file. The newest version 2.2 (dated Dec 26, 2007) adds support for different picture sizes and has a better settings form.