Hi T.,
I have heard from friends what they do for "the tooth fairy"...but when that day rolls around for us, we will probably just do whatever we think is appropriate. There's no inflation in teeth!!! LOL! It's totally a parent's choice! To me a quarter seems fine when they are first starting out...then if you want to "give 'em a raise" when they get older, that's up to you. I do like the collectable coin idea...you could help her start a "state quarters" collection, or give the gold dollar coins (I too remember the Kennedy half dollars, you aren't that old! LOL!). Or if she's not as into the "spending" part but would enjoy collecting, you could get some different foreign coins (various sizes and denominations), probably through your bank or even the internet, and dole those out.
We have a tiny tooth fairy pillow with a pocket in it, it's really cute. My little one is only 3 so "the tooth fairy" is a few years away, I guess (probably not as long as I am hoping, <sniffle>). Their tiny teeth are so adorable and then the gappy grins...but I remember with my stepson when he got his permanent teeth (especially the upper fronts) it looked like he had huge Chiclets in his mouth till his face "grew into them" LOL! So be prepared for that!
Best of luck with it - keep enjoying your daughter (aren't they great?)
Blessings,
S.