One of the first kids' artists that I really liked when scouring Buffalo libraries for kids' CDs was Joe Scruggs. His Joe Scruggs in Concert video includes a lot of fun songs, particulary of the type that might be called "cool idea songs", as in a simple idea or unusual twist that works in a song to create a fun experience. Good examples are "Put Your Thumb in the Air", "The Bicycle Song" and "Bahamas Pajamas". It's not just a question of being 'participatory'... a lot of kids' performers can find ways to do that... but also being really clever about it, and Joe does a great job of that. Some of Joe's music is a little bit sugary sweet for my taste, but I like quite a lot of it, even some of the sugary stuff. He's got a really nice melodic sense and many of his songs are very memorable.
Joe Scruggs website