A.S.
This makes me want to cry just reading it! I would totally do something with memories. Do you have any pictures? Scrap them together even in a blank canvas with mottos, life lessons, etc. that she may have lived by. The kids will love that later on in life.
Since you have the distance thing going though, maybe order some prints they may have sent you through like snapfish/Kodac, etc. You could order one blown up, or on a puzzle, drinking cup or various things they have on their sites. Hope that helps! I'll be praying for them for sure.
OH, I just thought of this too. :) Again the distance thing? it may not work, but one company back in IA is called 'Bearly Memories'. They make teddy bears out of the deceased's clothing. Then you can place a piece of her jewelry on it too. It was so great, we have a bear from my husband's grandmother and we keep it in a special place.