Thomas Kinkade Illuminated Tree Village

Limited-edition Thomas Kinkade illuminated Christmas tree features hand-painted figurines nestled among its snowy branches. Made of resin this Christmas Tree lights up using either 3 AA batteries or the included AC adapter.
Currently under $134.95 (as of 12-1-08).

Classic Lionel Holiday Train Set

This is the classic heirloom-quality animated holiday train set manufactured by Lionel, the foremost name in electric toy trains since 1900, when Joshua Lionel Cowen established the Lionel Manufacturing Company and designed his first model for a toy store display.

It's uses G-gauge track and can be set in a 52" circle or a 62" oval with the track provided.
Under $300 currently, but stock and pricing may vary.