One of the things we started sewing was burp cloths for my baby boy. They are quite fun to make and they are very easy. Here is a picture of them. We made 2 of each.
Chris' grandma is also making a baby quilt for his crib. She gave me some scraps and I turned it into a decorative pillow for the crib (trust me, I know you shouldn't have pillows by babies. It's just for decoration). Here is a picture. Also, my mom and I started making a brown dust ruffle to match the quilt.