For those of you still interested....

... in the Coverdell ESAs, here are a couple of more things.

If you decided to open an ESA you will have to actually select what to invest your money in. The 529 plans are limited to whatever is available in that program. Coverdells are simply a special brokerage account. You will need to pick where your money goes. With that being said...

Since an ESA is like any other IRA the most important thing is to keep your account fees low (preferably non-existent). After briefly looking around I found that Vanguard (ESA), E-Trade (ESA), Scottrade (ESA), and Schwab (ESA) all offer fee-free ESAs. The one catch with keeping the fees down is (1) to make automatic deposits and (2) get electronic statements.

Though not specific to ESAs, it is also important to keep the fees associated with the actual investments low as well. This means investing in no-load funds: usually index funds or exchange traded funds (ETFs).