I purchased some caution tape and stakes and set up a track area that was approximately 40 yards long.
We had approximately 12 kids participating in 10 games. The games were as follows: Kangaroo Hop, Three-Legged Race, 40 Yard Dash, Crab Walk, Bear Crawl, Egg Toss, Water Balloon Toss, Shoe Find, Limbo, and the Wheel Barrow Race. For the Kangaroo Hop and the 3-legged race we cut up pieces of bed sheets, for the Shoe Find I used a laundry basket and had each kid take their shoes off and placed in the basket. I then took them to the other end of the track and dumped/scattered the shoes. The kids then had to race to the other end and find their shoes and race back with the shoes on their feet. For the event prizes we purchased the Red, White, and Blue plastic poker chips and drilled small holes in them which my wife ran some red, white and blue ribbon through. On each chip we placed the event name with blue representing first, red-second, and white-third. These were handed out after the competition during the cake & ice cream (outside). Finally we gave out some small trophies that stated 'Kids Olympics - Savanah's Birthday 2007'. The kids that came were all between the ages of 8-9 years old but I did have a daughter that was a little younger that I allowed to participate by letting her cheat up in front of the older ones (She won the Limbo contest).