I was pretty happy when I found an Elf on the Shelf: A Christmas Activity Book on clearance for $2 last week. I was really excited when I read the copyright that says, "Permission is granted to the original purchaser to reproduce pages for individual and individual classroom use...." WOOT! Even so, I don't think you would have to have the activity book to do a nice folder book. There are a TON of printables on the elfontheshelf.com site(you do have to go through the sections looking though) and if you google 'elf on the shelf printable' there are many awesome teacher/parent made ones to accompany elf on the shelf, too. Many of which we'll be using.
Anyways, I grabbed some cheap tri-pronged colored folders and made 3 copies. One for each child and one for when we have messups. The activity/worksheet like pages were just hole punched and put in the middle of the folder. The craft pages that are meant to be cut out were copied onto cardstock and put in the pockets. I copied the page with the copyright and put the title picture on the front of the folder (the boys will get to decorate the folders during the holidays and put their names below the picture) and the copyright notice I put on one of the pocket fronts inside.
There are some printables on the official elf on the shelf site that I also plan to print out and put in the folders. Including some recipes which look like it's be easy to sub gluten free options for and some other projects and activity pages.
The boys are pretty excited about their activity books. They've already picked out which ones are who's. Another item that is going to be put up in the move until the holidays, lol ;-) This is the second thing we've been able to make from this one $2 book purchase, the first being the Elf on the Shelf Magnetic Activity Board made from the fold out back ground and stickers that came with the book (CLICK HERE to see that).