The Hot Christmas toy for 2006, T.M.X. Elmo

There's still more than three months until Christmas, but the toy that could be among the most popular for the pre-school set is already being unveiled.

Elmo is back and he's as ticklish as ever. The new, improved Tickle Me Elmo is dubbed T.M.X. Elmo, with the "X" standing for extreme. This Elmo slaps his knee, falls to the floor, rolls over and pounds his arm while laughing.

Fisher-Price, owned by Mattel, unveiled the new Elmo toy to TV Tuesday, ending months of unprecedented secrecy that's had the toy industry abuzz. Until Tuesday morning, only about 50 people had seen the new Elmo, and the Fisher-Price Web site pictured T.M.X. Elmo only in shadow.
The debut of T.M.X. Elmo came 10 years after the first Tickle Me Elmo was the must-have toy of Christmas, prompting some parents to engage in tugs of war in toy stores.

The new Elmo, which retails for $40, is also expected to be a hot seller. Already, customers were lining up at stores -- deja-vu for those who remember 10 years ago, when the first Tickle Me Elmo debuted. Executives at KB Toys and Toys R Us said preorders for the toy have exceeded expectations. Article here.