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I always do hand written thank yous. I feel like if that person took the time to shop for, buy and wrap a gift, I can take the time to write a thank you.

I think a verbal, "thank you" at the party is sufficient. I don't expect a thank you card when I give people gifts and I wish others wouldn't expect them either.
Maybe it's my Korean upbringing, but I've only sent out thank you cards for my wedding and baby shower gifts.
I'll definitely send out 1st bday thank yous if people from out of state send her anything. But I don't plan on sending thank yous to our guests. I'll just thank them at the party.. Oh actually, I'm giving everyone a party favor and plan on putting a little "thank you for celebrating M's 1st birthday with us!" tag on it.

I personally think thank you notes (hand written) are very important. I would be a little turned off if I never received one for a present I gave a child or if I got a thank you through email. It doesn't matter how bad your handwriting is, it's the thought and time that you put into it that counts.

@artbee: HAHA omg do they really?! eek! I just call my mom and MIL to thank them.. the gifts keep pouring in so I'm guessing it's okay!

@chopsuey119: I knew I couldn't be the only one! I have never heard of sending thank you's for birthdays, I always just say thank you at the birthday party.

@chopsuey119: my mom and mil don't expect a card from me (but I did write my mil one before I got married ) but if a cousin or friend doesn't send one they no longer get a gift. They feel like they didn't appreciated it enough to write a thank you, so why should my mom bother sending something else.

I've always sent handwritten thank you cards. But I've been to birthday parties where I've been given just a verbal thank you for coming to the party and for the gift. And I was fine with that too. But handwritten cards are always nice to receive. So I would do that too.

@googly-eyes: but we write thank yous for weddings.

@chopsuey119: Oh, no worries, chingoo!

I might have e-mailed thank yous for a younger generation but for older folks I'd do a handwritten note. If you're really worried about your handwritting you could always type them, put it in a card and sign both the card and letter.