I found this TERRIFIC site, and went and PLAYED for quite a bit...it is a great way to teach kids how to use the computer in a non-computer-y way! Up To Ten is geared for ages 0-10, although somehow I think a newborn is going to have a rough time with the interface!
Please go check it Up To Ten, and show your support! A truly wonderful tool for parents, teachers, and anyone who works with kiddies!
The following link is just a small sample of what you can do, go explore their site! (and then come back and shop with us...just kidding, kind of) Remember you saw it HERE first!!!

Boowa and Kwala : Paint the birdhouses

Up To Ten has been recommended by the following:
USA Today Hot Site, AOL, Yahooligans, the BBC (British Broadcasting Corporation), The Yuckiest site on the Web, 4kids.org, Yahoo Australia/New Zealand, TV Cable Hebdo, Micro Hebdo, Sites web 2000 (Microsoft press), Broadcast Magazine, Berit's best sites for kids, Lycos, Cybersurfari, About.com, Guide-Internet, 100Hot (the web popularity guide), GameLog, The Web This Week, Wicked 4 kids, ToysRUs, "Best Sites for Kids 2000", ZD Net, Net UK, Access Magazine, Software 2010, Tucows Kids, ZD Net...