I just wanted to say thank you to everyone for your ideas! I think I am going to go with a "flower power" type theme. Here's what I was thinking so far:
(and not necessarily in this order LOL)
cupcakes with white frosting, I'll use the colored cake decorating gels to make flower petals, and I'll use either a gumdrop or if I can get the Easter M&M's (that will be ideal as they are pastel colored) to put in the middle as the center of the flower.
face paint - figured I would paint flowers on their cheeks ;-)
fingernail painting - paint with a solid color, kind of dark like purple or margenta, then you use white, and with a toothpick, you dot on white spots where petals would got, then drag the toothpick gently through the dot to spread it out like a petal. They are so cute! My daughter and I have done these before and they turn out marvelous.
craft - It's a toss up between two things. Either door hangers or flower window hangers. I was just looking back through these posts as I could have sworn someone here suggested the door hangers, but I don't see it. Anyway, I figure we could get those inexpensive wood doorhangers from th ecraft store, they could each paint them and decorate them with their names and a flower or two. The flower window hanger is attached below, I made this from salt dough. I could make them up ahead of time and have them ready for them to paint.
I think that's enough as far as entertainment goes. They are at the age where they sit for an entire movie and we have plenty of microwave popcorn. I also plan on having juice boxes on hand (plenty of them) so that I don't have to deal with someone coming up every three minutes needing a refill LOL nor do I need to worry about spills.
If this theme sparks any ideas please let me know!
And Shawn, I love the pillow case idea, but don't really have the room to do that here.
House isn't big enough.