Here is a cute idea you can do with your kids that can replace the usual Gingerbread house People make every year. How about a Gingerbread Nativity! My sister Jana told me about how her play group made them. The site she got the idea from would not let me copy any of the pics or info, but you can find the link here http://www.aokcorral.com/projects/how2nov2007.htm
There are a couple of things I would change like I would use fruit roll ups to add robes or head covers for the people and I think I would give the sheep eyes etc.
You can also get cookie cutters that have all the Nativity shapes and make a gingerbread Nativity like this.