http://www.snopes.com:80/medical/toxins/sanitizer.asp
Normally I don't like to be an alarmist, but I thought I would pass this along. Maybe you have seen it. I actually got a long e-mail from a friend with the second story listed on snopes. I knew that not all of it sounded "right". No kid could have a blood alcohol of 85% and be alive! So something was off, but apparently the story is mostly true, and they can be affected or even harmed if they ingest a lot of hand sanitizer.
We won't stop using it, but will treat it like any other potentially dangerous household item. And actually it is only something we use a few times a month at most. I use it when we play at a local YMCA, after he touches everything, and if we visit a hospital, and sometimes if we haven't been able to wash our hands before we eat, while out and about.
I think as long as you don't use a huge amount, and make sure it drys they should be fine. The kids who did get sick from it, licked or drank quite a bit.