Last week we did a different kind of Christmas Family Home Evening. My husband wasn't quite sure about it, but I made sure it was very reverant and respectful. When the kids came out from playing I had made a little banner that said Happy Birthday and crepe paper streamers. On the table was a cake that said Happy Birthday with a bunch of lighted candles. We sang Happy Birthday (not to anyone specifically) and then the kids blew out the candles. Then we talked about birthdays and why they are important. We talked about how we celebrate someone's birth, and we do that because we love them. We also talked about how alot of times we give presents on birthdays too.
After that we moved into the living room where I had soft Christmas music playing. I read a scripture about Christ's birth and talked about how we were about to celebrate that wonderful occasion. I had some little boxes and we talked about what we would give Jesus for Christmas this year. I wrote down what kind of things the kids wanted to give him (ie, be nice to sister, help mommy clean, etc) and we put them in the boxes with a bow on top. On Christmas morning we will open them again to remind the kids of the things they are going to give Jesus.
I thought it turned out really well, and using something kids are very excited about and familiar with like birthdays made it more real to them that Christmas is a celebration of our Savior's birth. I also loved focusing on what kind of gifts we can give the Savior, instead of just thinking about all the fun toys that are coming :)