If you are looking at a telescope, I'd recommend this one: http://www.telescope.com/control/product/~category_id=classicdobs/~pcategory=dobsonians/~product_id=09804
It is a very good scope for the money, but not too big that a kid can't use it on their own. I got mine 2 years ago on ebay and felt fine letting my DS (then 6) use it - it is sturdy and holds collimation well (the alignment of the mirrors). While it is probably best for planetary viewing (and great for the moon with a filter), we have been able to see a nebula and several galaxies (and we are in a very light polluted area and are def. not experienced stargazers).
The first time your child sees another galaxy, even though it just shows up as a light smudge on a scope, and you hear what they think about that, is absolutely amazing.
It is also a great teaching tool for discussing optics, reflecting scopes vs. refractors, etc.
Cat
Orion also has some mini-dobs, which are priced even cheaper, and some may be decent, but
