I've received some really crap gifts from my grandma who is very cheap and so she buys stuff at two dollar shops for everyone. My mother (her daughter) has also received some great stuff from her. One I can remember getting was a tissue box cover shaped like a cat. It was particularly galling because my brother got money from her so he could actually buy something good. My mum has received white plastic serving platters, a really cheap and poorly made scrubbing brush, and one of those covers to protect plates from flies. She also likes to give those tins of sugar biscuits.
Oh, and this year, for my aunt's birthday, which granted isn't a Christmas gift, but it was still really bad, my grandma gave her a small cloth bag with cotton balls in it. Just a little something to show she cared!