Make a crayon roll using the tutorial over at Skip to My Lou. It is a quick, easy project, and is the perfect size for a stocking. I exchanged the tie closure for a button and ribbon (I've found ric rac or stretchy ribbon actually works best), which I think is a easier for the little people who can't tie things yet.
Grand Revival Designs (her free patterns are located in the right sidebar. She also offers a free stocking pattern). I like to add a jingle bell inside the stuffing of the balls I make - my one year old loves it.