My DD plays with her dolls ALOT. She loves to play with them in their strollers. The high chair is a huge hit, and she loves to feed her dolls. She doesn't use the cot as much, instead they sleep anywhere in the house that she puts their blankets. If you can find any dolls that are bath suitable, that is really fun for them!
And she loves backpacks, and handbags.
Anything related to sand and water play are popular here.
My DS had his 1st birthday yesterday, and he got some great toys that he will grow into - Little People Race track that makes the cars crash, and Playschool race track with 3 tracks and you push a button and three cars go racing down the tracks - 2 yr old DD is LOVING these right now! I think they are for 18mo plus, but we had 1-5 yr olds here for the party yesterday, and they all loved them.
Wooden block are huge in this house also. Oh, and so is a tea set. Duplo isn't bad either. And cleaning toys are great, brooms, mops etc.
Depending on your budget, nothing has been better for our kids than our swing set, followed closely by our trampoline.