D.S.
The triangle-shaped ones from Crayola are great! The ones shaped like animals are very disappointing. Little ones have to hold them straight up and down in order to get them to work and it's frustrating when they don't. But the triangle ones are washable (buy a Magic Eraser too, it helps), virtually indestructible and help little ones with a proper grip. My little guy is 2, has been using these crayons since 18 months and already holds a pen/pencil correctly without my having to teach him! I also second the laying down newspaper idea. We bought my son a table and covered it with newsprint (taped in place so it wouldn't move). He will draw on the newspaper too.
Oh! And when the weather is nice enough, sidewalk chalk is great for little hands. It's always sold in chubby sticks and you can draw from any angle. And it's fully washable.