My grandson had his first Christmas last year (2006), came over to my house, had lots of fun opening presents, watching the lights. This year will one that he'll remember, and my son and his wife decided it would be great to stay home and start their own family traditions. So I had a great talk with my daughter-in-law as she asked me about the traditions her husband remembered best.
I think his favorite was Christmas Eve. We'd have like a fiesta, enchiladas, taco's etc Some years we'd have a pinata. Then we'd gather around the Christmas tree and read the Christmas story from the Bible, have a song or two. Somehow they started the tradition of opening one present that night, and they haven't wanted to stop. Then they play games till we told them get some sleep!