Links:

Music For Kids - Musical toys and instruments for children ages 1-12 including music education software, instruction books and videos, toy drums, drum sets, hand drums, acoustic and electric guitars, toy guitars, violins, toy pianos, keyboards, baby toys, more.
Music For Little People - Children's music, musical instruments and books, videos, music for toddlers, toddlers and children's educational and multicultural music CDs.
Music Rhapsody - Real music instruments, videos, CDs, toys and parent song books for babies, toddlers and kids up to 8th grade; also: music classes and summer camps.
MusicKids Fretworks - MusicKids sells musical instruments, musical toys, and educational, interactive music for children.
Noisy Toys - Retailer offering drums and percussion for kids and adults. Find African djembes, Chinese cymbals, Egyptian doumbeks, Moroccan bongos, and Chilean rainsticks.
Orchestore - Site sells children's musical instruments including drums, percussion instruments, rainsticks, chimalongs, guitars and more.
Terrific Toys Musical Expression - Musical toys, novelties and rhythm instruments for children including a steel drum, bagpipe, accordion, vibra slap, bodhran, cabasa, nose flute and more.
The Sandbox Symphony Shop - Musical products and songs for children birth to six years old including drums, maracas, tappers, shakers, scrapers, autoharps, and an excellent video.
Toy Pianos - Toy pianos for children, built in the USA by Schoenhut Piano Company. All pianos are made of wood.