Ok - I am having a joint birthday party for my two daughters (ages 3 and 1).  We are inviting mostly family, some friends, and a few close neighbors that are friends.  Looking at my guest list, we have kids of variable ages. (either in the 7-11 age bracket or the 1-4 age bracket)

I want it to be fun for the kids, but with two different age groups I am not certain how to keep everyone entertained.  We weren't planning on doing any formal games, but perhaps a craft table set up with stuff for the different ages?  I was going to do a coloring station with pictures for kids to color, but that may be too babyish for the older ones. Does anyone have any ideas or suggestions?  If you were the parent of the older kids, what would you expect at a toddler party?

Thanks for any advice!