I think all these songs can be fun ones for kids and the common thread is that they all include hand claps. What kid doesn't like a good hand clap? Now if you don't like your kid songs with a tiny bit of sexual innuendo, skip the Eels song, but otherwise, all are safe. Of course the king of all hand clap songs is, "Clap Your Hands," by They Might Be Giants. Hey, they have a song for everything. I would love to hear your suggestions for hand clap songs that are cool for the kiddles. Send 'em my way for Volume 2.
All Girl Summer Fun Band, "Grass Skirt"
Ben Lee, "Catch My Disease"
Esthero (with Sean Lennon), "Everyday is a Holiday"
The Eels, "Hey Man"
LCD Soundsystem, "Daft Punk is Playing at My House"
They Might Be Giants, "Clap Your Hands"
The Beatles, "I Am The Walrus" (m4a, sorry)