Very good/interesting answers.
You want to 1) make it interesting, and 2) get them involved "playing computer".
I taught CS at Boston College for 4 years. The intro classes were not too much different from your kids.
You need to convey the idea that computers are stupid, there's only a few things they can do, they only do exactly what they are told, and they do it one step at a time. (Corollary: they don't read your mind.)
My first-day demo was a home-built computer I made. It had an 8008 chip, a bit of ROM, and an I/O port. It sat on a little circuit board nestled in a power supply box containing a transformer, some big capacitors, etc. I hooked two speakers to the I/O port, and I would explain that it was running a little counter loop, after which it would click the speaker, and you could hear the speakers going click, click, ...
Then there was a little capacitor hooked up to the timer chip that controls the memory. I would unhook the capacitor, and suddenly it would speed way up, and you could hear the speakers playing a little duet.
They liked that.
Added: I'm presently teaching a friend's grade-school kid to program. We're starting off with GWBASIC because it is tiny, simple, and free. First we did a program to convert between Farenheit and Celsius. Then we did a program to print random insults (that's a big hit). Then we moved up to simple arrays and sorting, and he picks it up pretty quick. I'm thinking of moving to a C-ish language or maybe UCSD Pascal, before getting too many bad habits with GWBASIC.