We also assembled an even funkier elephant pinyata, which we've been making in stages over the past week. The boys named him "Cutie" and took turns photographing him perched on our dining room table.
Then they went off to gather any stuffed zoo animals they could find in their bedroom to place strategically around the house as 3-d decorations. I heartily recommend zoo animal birthdays. You've already got all your party supplies just lying around in the toy chest.
Here's one Web site I consulted for pinyata-making advice: "How to Paper Mache"