How about paper chains? Decorating / painting Christmas tree ornaments. Baking and decorating Christmas cookies. I saw decorate your own stocking sets at the craft shop the other day - or you could do your own version at home with decorate your own Christmas sack using an old pillowcase.
get some styrofoam balls (Spotlight/fabric stores usually stock them) and make christmas deco's with them, by painting or sticking things on them (and then putting a loop of ribbon on the top to hang it with).
christmas colouring books, making a gingerbread house...if you don't feel like baking they have kits at ikea for $8, making rumballs (without the rum obviously) christmas card making
you could make a snowman's face using paper plate, cotton wool etc
make paper lanterns to hang
make stained glass windows - cut a shape into the middle of cardboard then tape cellophane to the back.
wrapping paper
doing the Christmas Cards. We started ours yesterday and I'd write in them, then hand to DD to "write" (AKA draw) in them.
You could make a wreath with bread ties and tinsel. You weave it around the bread ties and make it into a circle. They look quiet nice actually.
You could make a wreath for a door using an old metal coathanger and green garbage bags. Bend the hanger into a circle then use strips of the bag to tie around the wire. Then decorate with whatever you like.
You could make bon bons. We use paper towel rolls. Cut to smaller size, fill with whatever you want to put in them, then use Christmas Wrap to cover and make the bon bon. You can buy the cracker bits at spotlight and the likes if you want them to go "bang"
The could make Christmas placemats. You could then use clear contact to make them more user friendly - or take them somewhere to be laminated.
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Christmas craft ideas
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