One of my favorite baby gifts for my daughter was a personalized baby book from a company called www.iseeme.com. The book we were gifted was called My Very Own Name ($29.95). The hardbound book tells a little story full of animals and incorporates her name. She absolutely loves it and it's certainly helped her learn her letters.
There's also another title called My Very Own Fairy Tale. Both the books are loaded with personal touches. There's a printed dedication from the sender, and 15 letters for each part of the name. The illustrations are classy and sophisticated. What a thoughtful gift and ideal for a second child or the baby who has everything.