Suggestions....for the 8yr old son...Magnetix has large quanity sets, they are wonderful, my son plays with his off and on through out the year...there is a set of 500 with carrying case with wheels...he likes to use his mind and create new structures...My son is now 12 but he also liked scooters back at 8, but now they have electric scooters or electric choppers...or maybe telescope or lab kit for children, gravity boots are interesting, or maybe an arcade style basketball game if all else anything by Madden for ps2.
Suggestions....for the 2 year old...there are always the creavtive art centers, or maybe a play kitchen. There are power wheels little power vehicles for that age, doll houses with the accessories, or maybe the dora castle that includes all the furniture. There are dolls that are interactive. I have seen a wooden horse stable in that price range, very large to play with dolls that might ride horses. Little girls should always have dress up tea parties...tea set with table, maybe a tea cart etc.../Leap FrogLeapster and Vtech have computer like items that are fun and educational. Not too good with girls
All these ideas range from $75 - $100. Hopefully some of these might help