Steam gift codes are good.  No need to ship and you can electronically transfer the goods.

Any kind of digital goods: gift codes, game demo's, cd keys etc.

While this is hardly suitable for your site, I ultimately want my bitcoins to buy what I currently spend most of my pounds sterling on: groceries, utility bills and council tax. In fact my biggest problem with bitcoin as things are at the moment is that there isn't a single thing out there I want to spend them on.

But setting this kind of thing up is a much longer term goal of the bitcoin community.

I know this place http://bit.ly/bitcoindomains offers domains with bitcoin via bitpay. 

Here is what I would suggest.  Look through the Bitcoin economy, and try to find things that are undervalued, poorly-marketed, or which can be combined with other things (maple syrup and pancake mix) to add value.  Create a kind of Bitcoin "general store".  Negotiate bulk purchases with producers.  Add some marketing.  Create gift baskets.  Target Bitcoin consumers.  Attempt to build economies of scale and scope within the Bitcoin economy, and don't just focus on re-selling things produced elsewhere.

i think things are wide open right now.  Think mass market, widest audience stuff

Ammo.

Its not legal to sell ammo online in the US is it?

gift cards are the best idea.  anything to avoid converting to cash which is painful enough as it is.  i have libertyreserve and gg I just want to pay 4% and have f*cking cash, not deal with these wonky exchanges.

I believe a good start would be a store that deals in good that members of the community either produce themselves, trade themselves, or have a common interest in.  I for example make artisan tools like tomahawks and knives in a wood forge.  I have sold these for between $100.00 to $600.00.  A Bitcoin "etsy" would be great place to start, and it would be a great way to allow micro transactions to spread those BTC's around.