My girls love this bead craft. They are called Perler Beads. I'm sure they've been out forever but we recently got them out here. You basically have three items - rubber beads, a peg board and an iron. The shaped peg boards really help you with main items but with the square boards you can make whatever your imagination holds. You put the beads on the board, put wax paper over it when completed and heat it with an iron. All the beads fuse together. Once it cools off you can play with it, use it for decoration or give them as gifts.
The girls have been busy making tons of things. They give some away to their friends or teachers. They decorate their room with some. And they can put on plays with some. It's a great fine motor skill tool. And it helps them settle down at night or keep them entertained on a rainy afternoon.
