I would suggest any or all of the following:

Knitting tote bag
Knitting book (Amazon has lots)showing stitches and troubleshooting
Gift certificate to local knit shop or Michaels
Knitting Pattern-a-Day: 2007 Day-to-Day Calendar (Amazon)

It's difficult to buy needles because there are so many kinds, sizes, lengths, and each pattern requires a certain needle. There is a set below, however, if you want to do this.

Honestly, I would not gift yarn. Choosing yarn for a project is one of the most fun parts of the project, and you would not want to take that pleasure away from your Mom.
That's why I suggested the gift certificate.

You are sweet to think of such a thoughtful gift for your mom. She's a lucky mom.

Here is a link that might be useful: Herrschners

WARNING: Novel ahead!

As someone who just got tired of buying a million different kinds of needles for everything, and bought a set, I would suggest going that route if you think she'll stick with it.

I bought the KnitPicks option set not too long ago and LOVE THEM. Unfortunately, KnitPicks is slow to deliver, but they've got good response times. I had a problem with one needle and emailed them, and got a replacement within two weeks. They're a bit pointy, but the cables are absolutely devine. No memory whatsoever. Very cool.

KnitPicks also has some pretty nice yarns. I wouldn't recommend Wool of the Andes as a soft yarn, as it's kind of scratchy, but the colors are beautiful and it's a good, easy yarn to work with. I made a pair of socks out of it for a friend, and he really liked 'em, they're holding up well, too. I just finished a bib made of Shine Sport and ohymygod, this yarn is a dream to work with. Cotton and modal, it's soft and a bit stretchy.

www.elann.com also has great prices on yarn, but stuff you can find in the store, as well as their own line. They're really fast to ship, and high quality.

If she doesn't already have one, a crochet hook in a size like 5 or 6 for fixing mistakes is always good, too.

Tapestry needles with curved ends. They make it easier to sew seams.

Blocking pins - these aren't the quilting kind! Gotta get the rust-proof ones as to not ruin your work.

I think the best knitting related I've ever gotten (besides the Options set which was actually an early Christmas present from my mum) was a gift certificate to my LYS, because it allowed me to take a class that I couldn't afford normally.

Books... The Knitter's Handybook to Sweater Patterns (Ann Budd), The Knitter's Handybook to Patterns (same author - has socks, hats, scarves, mittens, gloves, etc). A stitch dictionary...

Hope I didn't overwhelm you there, Laura. Good luck on your quest.

~ Kit

Here is a link that might be useful: KnitPicks

Thanks so much for the suggestions. Socks, you're probably right about trying to pick yarn for someone else. I know when people give me fabric they're often way off base with my tastes.

Kit! I see you have been cheating on us quilters!!! Just kidding -- as soon as I saw your name I recognized it and then remembered that you said Knitting is your first passion.

Thanks for the ideas. I think she'll be pleasantly surprised. (Apparently my step dad made fun of something she knitted -- BIG MISTAKE. HUGE FAUX PAS!!!!! So I think she'll be pleased to have her hobby given the respect it deserves!)

She'll be flattered too if you ask her to make something simple for you, like a scarf.

I think she'll be MORE than pleasantly surprised with your gift. I saw a neat little knitting book in a knit shop, not too big with a spiral binding, that looked like a fairly comprehensive knitting guide, but I could not find it on Amazon. If you go to a knitting shop (not Michaels) you might keep an eye out for it.

A case for her knitting needles might be nice. And a nice knitting bag or basket to put her current project in. Don't buy yarn unless it is with a pattern, but will she want to make it? So many unusual yarns are tempting to buy, but the knitter may not have any patterns for it.

A simple reference book like Socks 12345 suggested is a good idea for a beginning knitter. The Knitter's Companion by Vickie Square has been updated and is a great resource, as well as Nancie Wiseman's Book of Finishing Techniques. You could also get a couple of knitting notions like markers, needle sizer, counter etc and put it into a little organizer bag for on-the-road knitting.

When I was a beginning knitter, I spent a small fortune on circular needles and lots of notions and books. Some of my favorite books are by Elizabeth Zimmerman, my two favorites being A Knitters Almanac (12 projects) and Knitting Around. Any of these would have been a welcome gift, or even a gift certificate to a craft or yarn store.

Another suggestion that I haven't seen in the other postings is a pair of HANDEZE. They are elastic fingerless gloves that are great for tired, sore hands. I use them all all the time while crocheting.
Barb

As a relatively new knitter, I would love to recieve needles (there are a lot of sizes I don't have yet) or yarn or pattern books. But I know that more experienced knitters develope preferences about each of those things and get increasingly difficult ot buy for.

Since you quilt, what about a quilted knitting bag? Any large bag without a lot of zippers or things thatc an catch on your stitches would work, but something handmade is always fun.

Or a quicker project might be a needle roll - more or less a big rectangle with long narrow pockets to hold all of her needles. There are lots of patterns online if you need inspiration (just google knitting needle roll).

Another less traditional gift would be beaded stitch markers. I've seen a lot of crafty knitters making these. Picture lightweight dangly beaded earrings that can slip over a knitting needle. Craft stores sell perfectly functional little plastic circles as stitch markers - the beaded kind are just a bit of an indulgence.

One of the nice things about people who craft is they understand how much time and effort goes into a handmade gift.

Here is a link that might be useful: craftfetish blog