I stopped in KMart last night, swung by the toy department, and saw signs for 50% off clearance toys. There were lots of things for all age groups. I paid as little as 75 cents for some things. Best deal was a guitar hero-type toy ( I can't remember the name) that was originally $40, marked down to $10, and I paid $5. Most things, I think the final price was probably about 75% off original prices. A lot of the clearance toys were grouped in one aisle, but I cruised the whole department and found clearance items mixed in everywhere -- but all of them had "clearance" tags on them and the pegs or shelves had yellow clearance flags, which made them easy to find...everything from Barbie and Bratz to V-Tech.

Thanks for the update!