A friend of mine has a company called Sugar Tush which makes the cutest yoga themed clothing for babies and toddlers. I could not resist the "Downward Facing Baby" tee. Sadly, she is closing her business to try other endeavors so there is a HUGE sale on everything in the store... 70% off with the code "goodbye"
Not only do they have great clothes they also have custom photo albums embroidered with your child's name and birth date. If you need a gift for someone having a baby this is a great gift, in fact, I just ordered one for Nate!
Check out http://www.sugartush.com for more cute gifts!