Video Reviews and News : ****Excellent***Good**Ordinary*Poor : <i> Recent videocassette releases, reviewed by Times critics.</i> : Kids

** 1/2 “Grandpa’s Magical Toys.”

Price/Stern/Sloan. $21.95. From the Wee Sing folks comes another live-action musical hour of familiar songs, clapping games and jump-rope rhymes. Three children shrink to pint-size, thanks to Grandpa’s magical music box, and spend the afternoon playing with a roomful of toys that come to life. It’s dance, play and song time with the Muffin Man, the Farmer in the Dell, puppet Punchinello, assorted dolls and Carl the Crayon. Good production values, an appealing cast and a wide range of activities almost make up for the show’s tinge of preciousness.