I bought 2 on BF at Office Max. They aren't specifically for kids, but all of those have HORRIBLE reviews and horrible resolution. The 2 I got are 4 mp by DXG for $49.99 each, and for an additional $11 I got a 1 year replacement warranty that COVERS IT EVEN IF IT IS DROPPED!!!
I know that is a bit much to spend on a "TOY", but it has to be more fun than a camera without an LCD that takes lousy pictures, and those cost $40.
HTH