Hi,
The good news here is that the deadline for such has been extended by 12 months.
The following is taken from the UK passport issuing website (UKPS).
"US law originally required that travellers under the Visa Waiver Programme carrying passports issued after 26 October 2004 would need to hold biometric passports. The US Senate has endorsed a one-year deferral of this requirement, to October 2005, which will come into effect once the President has signed it into law.
The Foreign and Commonwealth Office (FCO) and UK Passport Service (UKPS) welcome this decision, which will now enable British travellers with valid machine-readable passports issued before the new deadline to travel to the US under the Visa Waiver Programme up to, and beyond, October 2005.
The primary biometric identifier approved by the International Civil Aviation Organisation is a facial recognition biometric (which can be derived from a passport photograph). The UKPS and FCO, in collaboration with international partners, (including the US), have a programme of work in place to implement this biometric in British passports from late 2005/early 2006".
Your passports should be machine readable i.e on the very back page there are two lines of data regarding you)and all your children should have separate passports.
HTH
Hawaii