It's great that your relatives want to contribute to your daughter's future! By all means, encourage them to keep doing that instead of buying things that she will soon outgrow!
At first, you'll probably just want to put the money in to a money market account until you've accumulated $1,000 or so.
You may want to check out
www.savingforcollege.com to compare the different types of plans available.
Also, if you go to MSN Money and type in "college savings" you can find some good articles.
My sister just went through what you are going through, and she decided to go with a Coverdell Education Savings Account