Not sure of your taste but here are some thoughts.
* Do you knit? There are lots of freebie patterns (bells, socks, sweaters, holly, etc.) searchable on goggle.
* I made angels
last year using a pattern from Living Crafts magazine, maybe your library has it? Or, they are somewhat similar to making bendy dolls (tutorial here
*I've also made sets of German paper stars
for ornament gifts before.
* These birds
would be awesome as ornaments.
You could also check out these pools on Flickr for ideas...http://www.flickr.com/groups/69313482@N00/pool/http://www.flickr.com/groups/enfeites-de-natal/pool/http://www.flickr.com/groups/christmas_craftrs/pool/