Hi Christina,
The good news is that it does appear that Disney will bring back
Magical Beginnings. Unfortunately the 2008 dates are not yet available. We took part in the event last year and had a wonderful time. My family got to see Ralph's World and Johnny and the Sprites.
I was very impressed with the overall quality of the the shows. The performances were inside a separate building with arena like seating and air conditioning. If possible, get in line early so that you can sit up front. They allowed a certain number of families to sit on a carpeted section right in front of the stage. During Ralph's world, Ralph jumped down and danced with the kids. He also was available afterwards for autographs and pictures.
In 2007, Magic Kingdom opened Fantasyland early a few days a week. There were also extra character interactions. For example, Mickey and a castmember friend of his organized a game of Head, Shoulders, Knees, and Toes with a circle of preschoolers. Peter Pan and Wendy also spent a lot of time playing with some kids.
I also found the Magical Beginnings park maps to be very helpful because they only featured those attractions appropriate for toddlers and preschoolers.
I hope you and your little one have a magical vacation.