i have a nearly 16mth old little boy, and his favourite things are balls, cars, blocks, books.

mega blocks make a truck that has three cars that come apart with it. it doubles as a car carrier. that is a favourite of his. We got him a bag of wooden blocks too from the early learning centre. an empty scrap book and crayola crayons (the washable ones) are also a huge hit at this age. Any of these things are suitable for a two year old too... things that they can build or "do" are all good choices. diggers and trucks (tonka are a great choice as they last and last) Lego, duplo are all good too.

Hope that helps.