Well, I'm glad the ferret idea worked itself out quickly. Unfortunately (in my own adventure for another pet) I have been told ferrets make good pets without being told about all the other little quirks in their behavior. Since prey drive in only a pretty recently expanded upon topic (especially since smaller pets and smaller dogs are now beginning to crush the popularity of big dogs) I found out they have a high prey drive and will happily go after small birds
I love reptiles....they aren't very exciting pets but they are interesting in other ways. If either one likes reptiles I would go with a breaded dragon, leopard gecko, blue tongue skink, corn snake, ball python and if you can handle a bigger snake in a few years a red tail boa can be a good choice too. I would not get a milk snake or King snake they are often too wiggle and kings can be fairly aggressive.
Don't forget Crested Geckos! I am looking into owning one this year and I think a Crestie fits my bill well, though I am going to ask a few questions on here for people who own both reptiles and birds. I have in the meanwhile been in contact with crestie owners. The best thing I have found is if you are squimish around bugs Cresties can be fed exclusively on a diet of repashy crested gecko food. I've been told mine will grow slower (if I get a baby) but have also been told not to feel pressured to give them bugs.
I've also been told that for kids beardies are really a nice pet. But no kids in our house so I'd rather go with a crestie.
One thing I've been told over and over again, is that reptiles do not love you. Hot debate among some optimisitc owners who anthropomorphize their animals, but I think it's important if you getting a reptile for kids. Most children like animals that will love them back, and reptiles don't always like to be handled, so while they are awesome, I'm not sure they would really be the best for what your kids want.