Gary DeRoy (PC Racing Recommendations)
Racing games are more wholesome than "shoot-em-up" games and a little more in line with the Christmas Spirit.
For Dad or Mom, I'd recommend Nascar Racing 2002 Season by Papyrus or F1 2002 by EA Sports.
For the kids (or less serious drivers), I recommend Midtown Madness 2 or Monster Truck Madness 2, both by Microsoft. They are older titles, but are still easy to find and quite inexpensive. Both offer online racing and all-world driving (which means you can drive anywhere and don't have to stay on the track). Kids can explore the countryside and find little hidden places. Monster Truck Madness 2 is the older of the two games but has hundreds of free tracks available on line. Midtown Madness 2 Allows you to drive in either San Francisco or London. There are plenty of scenarios you can run, a regular race; go for the gold; and training modes. If you have two computers at home, Mom and Dad can race with the kids or just play tag. Kids can go over jumps, sometimes several hundred feet, in both games. They'll show you how to make a jump in San Francisco and land on top of buildings, and they'll also find all the little hidden areas Mom or Dad will never find.