According to folklore, a gnome in your home or garden brings you good luck, prosperity, and health. Some people even believe that their gnomes can come to life and help the family with the gardening and housework. Whatever your beliefs, gnomes are all the rage. Everyone needs a gnome.
When I was a child, a neighbor had a hobby of making gnomes out of wooden beads and felt clothes. In my quest to find the pattern for my two children, I came across a wonderful book by Thomas and Petra Berger titled The Gnome Craft Book (Floris Books, ISBN 0-86315-300-3). In this book are directions and patterns for making a variety of gnomes for the home. Examples are felt and wool gnomes, knitted gnomes, gnome dolls for children to play with, wooden gnomes and stick gnomes, paper chain patterns of gnomes, and embroidered patterns.
If you're not sure if you believe in gnomes, you will want to check out Wil Huygen's book called Gnomes (ISBN 0-81090-965-0). In this book, you and your child will learn all there is to know about gnomes, such as where and how they live, what they eat, and what their daily life roles are.
For older children, R. L. Stine has a great Goosebumps book out called Revenge of the Lawn Gnomes (ISBN 0-43957-375-0). In this book, two tacky lawn gnomes act up and take revenge on the neighborhood. Like most books in the Goosebumps series, Revenge of the Lawn Gnomes is excellent fun.
Online Resources:
Knitted Gnome Instructions (Knitwitts)
http://www.knitwitts.com/content.php?content_id=17
History of Gnomes
http://faerie.monstrous.com/gnomes.htm
