having been to many a 1-2-3 year old parties in the last few years

Pass the parcel is one the kids understand, if kids are little get the mums or dads to sit in circle as well

we have also had pull string pinata's (you can pick up one at k-mart under $10 then you fill)

depending on the level of understanding musical staues, simon says...more for fun than anything else

we also just let the kids run riot at that age just having heaps of balls, bikes they are happy with a less structured party