Here is a great computer program - Alice. Actually, to be specific, Alice is a programming environment meant for kids. And it's free! Basically - Alice allows kids to create animations that tell a story. This programming environment teaches kids the very basics of object-oriented programming. Users of this program drag and drop pictures to create an animated story and share their movie with friends (we haven't figured out how to do this yet). Everything the child does - corresponds to code in an area of the screen - so the child can see that there is a computer language behind what they are do.
I first heard of this program was when I was looking through a Marquette University flyer (their outreach flyer for kids). I saw that Marquette offered a Saturday class that teaches kids this program. This looks like a great class as well.