In reply to Heike:
A wheel
A lever
A pulley
A balance scale
All basic, but essential pieces of technology, and also demontrate fundamental mechanical principles.
Water wheel was going to be my other suggestion. You could combine water wheel, windlass and pulley to build a crane... The water wheel and windlass effectively demonstrate the lever effect (force multiplier).
Or, on a climbing theme, a belay device, illustrating the capstan effect.
As kids, we used to make and race little wind carts, using the removable wheels of 'Hot Wheels' cars, a cocktail stick, a bit of plasticene, and a bit of paper. I probably invented them when I was about 8 or 9. I made a switch for a 'burglar alarm' for my bedroom when I was about six, soldering a strip of phophor-bronze to a scrap of circuit board, and connecting it to bell and battery...
I made a rubber-band car catapult with a little 5-yr old lad when staying with a family on my industrial year; rubber band, stapler and cornflakes packet. Simple, open box to hold car, with rubber bands at either side of a 'launcher' track with ramp. He played with it nonstop over the weekend... I rember explaining additive and subtractive colours to him, too, showing him the rgb dots on the TV, and sweet papers over a torch, and felt tip pens.
Potato prints are also excellent, and a lot of fun.
Post edited at 18:42