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A few weeks before his birthday, we take Tyler to the store (usually Target or WalMart but occasionally Toys R Us) and have him choose 10-15 items, then we take pictures of him holding each one. I upload all the pictures to Costco or Snapfish and then send out an email with the toy names and the link to the album. I CC all the grandparents and they reply back when they purchase an item so there are no duplicates or buying a Bionicle he already has (because they all look alike to me!).
Tyler gets exactly what he wants, the grandparents don't have to guess what is "in" that year, I don't have to explain what a Bakugan is and everyone chooses what fits their budget.
For more WFMW visit Kristen at We Are That Family