Around our house, I actually use more power tools than my husband does. He's great with electronics and computers but when it comes to home repairs, forget about it.
My all time favorite tool is my Dremel. It's small, light weight and can get in the tightest spots. Like it says on the instructions there are over 175 uses for the Dremel which include drilling, sanding, cutting, polishing, buffing, carving and many more. I grab my Dremel before I grab any other power tool and most of the time, it is all I need. My Dremel came with a hard plastic storage case and a 40 piece accessory kit. There are also more than 150 additional accessory bits available for purchase as well. The model I have has 2 speeds so it works great for both home and craft projects. The best part of the Dremel for me is the control I have using it. It is like holding a large pen and can be guided very easily around my projects unlike larger power tools that are harder to hold.
Over the years I have used my Dremel for everything from drilling holes to sanding off rust but my favorite use for it is carving pumpkins (please see my pictures above). The Dremel makes pumpkin carving fun and easy but be warned if you attempt this, it is very messy so be sure to wear old clothes and do it outside. If you have ever used a pumpkin carving kit that has one of the pokers in it, I use the Dremel much in the same way. I use the drill bit attachment to drill all the holes I need. I then use the cutting attachments to cut away the parts that are removed in the design. Finally, I use the carving tools to carve away layers of the pumpkin skin to get a shadow effect.
This is a great tool for everyone to have in their tool assortment. If I were to change anything about this, the next time around I would get one of the cordless models. Many of the projects I use it for, are done outside and not having to plug it in, would help alot.
Update On Oct 15, 2008: This year we decided to try the fake pumpkins sometimes called funkins available at Michael's. I used my Dremel to carve those as well and it worked great. The first 3 pumpkin pictures of Captain Hook were done on a real pumpkin and the last 2 of Jafar and Malificent were done on the fake pumpkins. There is a lot of dust when you use the Dremel on them though so be sure to wear protective eye wear and and mask.
Update On Aug 26, 2009: The other day I was in lowes and saw that Dremel now makes a pumpkin carving kit. I guess I was ahead of the curve, LOL. The kit is cool but you do not need the kit for carving pumpkins, a regular dremel does the trick just fine.