We've just come across a great resource called the Praise Baby Collection. Its a DVD series that's modeled along the same lines as the Baby Einstein series and combines popular praise and worship songs with colorful animation and real world objects. All our kids (ages 3 months to 5 years) really enjoy watching it, and its great for adults to sing along with as well. We think its a great way to involve the kids and adults in a time of praise and worship.
You can buy them at Wal-Mart for less than $10 each. If any of you have used these, let me know what you think.