Put together a real family tree. This link has a great Christmas tree made of photo boxes.... http://www.thecraftypc.com/chrisfamtre.html
Make a personalized ornament for each one in the extended family. Maybe one that portrays the person's hobby. That reminds me of Days of Our Lives... do they still do that?
Look at this really cool family tree ornament from one of my very favorite places to visit - Bronners.