Click the image for a larger version.
As someone who has hand-made Christmas presents for the past few years, with varying degrees of success, I can tell you that the best way to do it is to prepare well in advance, begin making them long before you plan to send them, and try to let the amount of thought and care you put into them show through. Otherwise, it just ends up being a disappointment for you and them.
There are different rules for kids, though. If you're a kid and you make a present yourself, it counts ten times more than if you buy something. Period. Even if it is a mud pie. This only works up to about 14 or 15, though.