This is kind of a brain dump right here, but I got started replying to the topic on hand and kind of just kept going, so excuse the lengthiness!
http://www.amazon.com/Hohner-Piece-Rhythm-Instrument-Set/dp/B00000K3PWWhile this is not the set I have, I have looked at this one and it seems to be a good choice. Also consider maracas, rain makers, and sandblocks. Pay attention to pitch and use a smart phone app to test the accuracy of your instruments you already own like keyboards, xylophones or glockenspiels. I took away my daughter's toy piano (that she loved) because it was just training her with incorrect information. I just put it out of sight while she was sleeping and she thankfully has not asked for it. I will be replacing it soon though. Label pianos and such with their note letter names and/or solfege names. I used a label maker for this. Some programs come with pre-made stickers to put on the keys, but if you are just doing your own thing you can label them yourself.
My kids LOVE this lollipop drum. Our pre-zuki teacher uses one of these and I just had to buy one for home use. We got ours for $10 shipped on Ebay, I think it's the midsize one. It's by Remo Kids which is a reputable band in percussion, and they have quite a line of kids drums from bongos to floor toms and everything in between.
http://www.amazon.com/Remo-Kids-Percussion-Lollipop-Drum/dp/accessories/B0002IHEFYhttp://www.remo.com/portal/products/5/505/remokids.htmlhttp://www.remo.com/portal/products/5/505/remokids.htmlI cut and pasted this quote from a discussion I had with a respected musician that is involved with teaching young children and also raised musical children of his own. I selected some info here and there from several emails that was most pertinent to this forum/discussion, but I did not take anything out of context.
"The best products are going to be ones that are engaging to both children and parents alike. The most important thing to understand is that most children's "so called" musical toys are not musical at all. Most of the keyboards are not properly tuned. All they do is offer bad information to children.....Also, there is a big difference between being musical and playing an instrument. Great instrumentalists encourage their children to practice musical dexterity. That is wonderful...but it doesn't really help in developing musicality. Learning grammar and spelling doesn't make you a great writer.
Musicality is about communication and feeling. It is a language, the most powerful language. Start with the basics of tempo and beat. Clap hands to simple songs. Play notes for them and have them find the notes for themselves on a professional instrument (even if it is a simple instrument-just needs to be in tune). Have them sing the notes. Do the same thing with chords. Play a triad like Do, Re Mi. You'll find that your knowledge and understanding of music will grow as you are helping them to learn. Encourage creativity."
We are mostly exposed to just a few simple major scales and a few keys. It's like teaching a child about the letters A, C, F, G, N, T, Q, and Z, and expecting them to write a complete sentence....A child has a window of 2 to 3 years to absorb this information as a primary language. After that, they will only retain it as a secondary language.
And I am cutting and pasting this from a different email discussion with another knowledgeable individual that I felt was worth sharing here. I truly hope they don't mind!
I asked about using a glockenspiel to teach pitch,which is very common in Doman style parenting...
Regarding instruments... If a piano could not be used, I would hesitate to use any bell-like instruments because their timbres have been documented to cause pitch confusion even among experienced absolute musicians. Bell-type sounds are difficult to identify absolutely because their timbre obscures the pitches. Tuning-fork sounds are difficult to identify absolutely because the information in the physical signal is solely pitch. Piano sounds are easiest to identify absolutely because their timbre enhances the pitches. And then... wind instruments are difficult to use because they require special skills to produce accurate tones. Stringed instruments are difficult to use because they must be accurately tuned before every use. Pianos avoid these problems. This doesn't mean that other instruments can't be used, but these are the reasons I know to recommend using the piano.
I thought his opinion was very interesting and makes sense (about bell instruments). While he is not familiar with Doman-style early education, young children's brains are so amazing that I wonder if the tuning fork issues he mentions are truly applicable to them? TW has many people who have gone through their program and gained perfect pitch as a result and they are big advocates of using tuning forks, maybe his concerns are only an issue in older kids and adults not in this particular window of opportunity in the early years?
Although, for a bit more than the price of tuning forks, I can purchase a quality used digital piano and I think we will get more use out of the piano long term. After speaking with the experts at the piano shop, they recommended a Yamaha Clavinova or a Roland. I plan to go with the Clavinova b/c I read a comment online about Rolands not being as durable and I know the Yamaha brand is reputable in general. The Clavinovas are created using the sound of a grand piano and they are digital so they will not go out of tune. They run about $1000 and up new, but I have seen used ones in the local classifieds for $150-$400 and up, depending on age/condition, etc. I am hoping to find a CLP model because they are the simplest models with the fewest extra buttons to distract a child.
They mentioned that Yamaha, so not to lose the lower end customers, has another house brand called Arius that is not quite as nice as the Clavinova. They also said the furniture/cabinetry and such is a big part of what drives up the price in general for pianos.
My primary concerns are using a piano with the best possible pitch within my price range because this is what my kids will be using to train their ears on. It also has to be midi compatible, have 88 keys with weighted action that simulate a traditional acoustic piano, and preferably has a sustain pedal as well. I want it to be something that will grow with my family as long as it lasts anyway, something we can all use (adults included), and something that I don't have to replace any sooner than absolutely necessary (hence the full keyboard with weighted keys). That way, hopefully when I buy a newer fancier model down the road (if they stick with piano) they will be old enough to enjoy it. Until then, just having quality sound is the biggest issue for me.
Maybe this information will help someone else out there. I know you mentioned you don't have room for an entire piano, but I don't know if they sell the clavinova's without the furniture cabinet. I know the arius's are sold without the cabinetry. Good luck with your music program!
PS If you like Melissa and Doug toys, check out Imaginarium toys as well, they carry them at toys r' us. I just recently discovered them but they looked like they had some options similar to M & D.
http://www.toysrus.com/family/index.jsp?categoryId=3542240&view=all And Montessori toys too for that matter (available lots of places online).