This may be my favorite ornament so far. I stole the template from This project over on Martha Stewart's site. I actually printed out two copies of Martha's template, cut them out, then glued them all onto one sheet (you can fit 6 onto one sheet). I didn't do this so much to save paper but rather to make it easier for my little ones to color them. I printed them out onto construction paper, let the little ones choose which color paper they wanted, then turned them loose with some crayons. After they were done, I cut them out and assembled them. They're really cute on the tree-the construction paper is just thick enough to hold it's form, but fragile enough that they flutter and move just a little.
This is one of the ones the boys did.
A few more.
We also did a few in craft foam. The craft foam ones are more 'polished', but my little ones can't really help decorate those, and they don't look as fragile on the tree. With older kids, though, the craft ones could be really nice, because of all the embellishments you could add.
I'm sure there are other designs out there that would look just as awesome, and possibly even more materials. I'm currently brainstorming a way to do them in fabric that doesn't involve a pound of starch or lots of layering and sewing :P. One note--I hated what my oldest calls the 'tails' on the template I used, and actually just nixed it on several birds. I played with placement, cutting a slit, using glue, and I just never got a 'look' that I loved. Maybe it's just personal taste, but if we do these next year, our birds will be tail-feather-less :D