Coincidently, an article about this very topic was in a supplement to today's paper. According to the author, Carol M. Ostrom of the McClatchy-Tribune News synidicate (and I'll just quote brief snatches):

The email story goes like this: School officials phoned Halle's dad...[she] was rushed to the emergency room...being severly lethargic and inchorerent.

Turn out that classmates had seen Halle "like the sanitizer from her hands."

Snopes.com, according to the article, cites television reports out of Oklahoma and says the story is basically true.

HOWEVER...the article also quotes William Hurley, medical director of the Washing state Poison Control Center. Hurley said that an average-size five year old would have to ingest almost six teasponns -- about one ounce -- of an ethanol-based gel to cause toxicity, and about half that from isopropyl gels. Regardless, it's more than the typical squeeze on the hands.

According to Hurley, the article states, the state poison control center has received 656 reports of children ingesting hand sanitizer gels; only 25 of the kids showed minor signs of toxicity such as coughing or vomiting, and just 1 showed signs of intoxication -- and she had drank an estimated half to two-tirds of a 16-ounce bottle. "She was a little goofy in speech and in walking, but not sedates or in any danger," [Hurley] said.

Hurley also makes two more points: children should be supervized when using the gel and the gel dispensed by an adult, containers should be labeled with a "Mr. Yuk" sticker and kept out of reach of children. The second point is that a 2005 study (uncited) shows a 59% decrease in the spread (emphasis supplied) in gastrointestinal illnesses when families used the products.

Make of it what you will. I'm going to use them when I must and wash thoroughly, with soap and water and vigourously rubbing my hands together for 20 to 30 seconds, when I can.