One of the simplest uses of pallets is to create storage containers from them. You can do this a variety of ways, some more utilitarian, others more decorative. First, let's think of some things we can do with pallets that don't require too much work.
The easiest solution is to simply lay a few pallets on top of each other; it leaves about five inches of space to shove in whatever you desire. Stick a cookie sheet or some shallow baskets on the surface so your materials have something to sit or lie on, but can still be easily pulled out.
If you're looking for a good start, try wine bottles for an inexpensive, rustic looking wine rack [source: Improvised Life]. It's also a decent way to store flat things that you may want handy but out of the way; think plates, certain cooking tools or ingredients, stacks of books, clothes and so on into pretty much into (a five inch tall) infinity.
If you'd like more storage that's a bit smaller, consider cutting your pallet above the corner of the top or bottommost slat. Prop the resulting rack against a wall to fill with (toe-side down) shoes or a box of slim books, ready to fit in the corner of the kids' room.