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I agree wholeheartedly with this article, I was struggling to find a language to teach my son, but then I stumbled upon KPL (Kids Programming Language) see http://www.kidsprogramminglanguage.com/ for full info.
This is an excellent language, simple to use, FREE!, and very similar syntax to modern c#/vb.net(it is .net based) the thing that really hooked us was the fact that with a minimum of simple code you can have sprites (ufo's, planes etc) flying all over the screen, instant gratification for my son!
Theres also a version 2 in the pipeline which offeres 3D graphics and access to the entire .NET framework.