Don't these toddler stilts look fun? Full instructions can be found at the blog, Made by Joel. This project was inspired by the tin can stilts he had as a child. Joel felt the tall coffee cans were too high and used 2 x 4s instead. Made by Joel is a neat site which "shares art, craft and handmade education projects for children and their care givers".
Use Stockade's Brad Point Bits to drill the holes in the wood.