I have an old Conn Director wooden clarinet. It was a great cheap instrument that I re-padded myself, and enjoyed playing as a second axe. Unfortunately, a key broke on it a couple of years ago and I had difficulty finding a replacement, so I retired the instrument. It would most likely be a decent instrument for your grandchild to start on.
Don't spend a lot of money, however, having it refurbished - I would say that if it needs more than $100 in repair (this is probably the case), it's not worth it. You might want to visually inspect it for cracks before even considering having it repaired. I've seen these on eBay very cheaply priced.
Randy
www.randyhunterjazz.com www.beginningsax.com