Trying to ensure that the kids have fun is absolutely the most important thing. To the extent that you want to try to teach them something about the game -- and you can get by without worrying about wins and losses -- here are a few ideas:

1. Develop their ability to dribble and handle the ball. I purchased "goggles" (the things that block their downward vision) for all of my players and had them wear them with increasing frequency during practice for that purpose. By the end of the season a few of them were able to keep them on for the duration of our practice sessions.

2. Assuming you're allowed to play/teach zone defense, I got five sections of rope that I tied into loops large enough to define coverage areas and used those to demonstrate shifts along with ball/player movement.

3. Come up with a game plan that ensures equal playing time for every single player in every game to the greatest possible extent. And beyond that, try to give every player a chance to play every single position in a game at some point during your season. (You may have some who balk at taking on the point guard role. Don't press them if you do.)

Biggest advice is to communicate what you're doing to the parents as much as possible. That will defuse the inevitable criticism you will receive from them at least a little bit.