Nightmare Before Christmas Circus

My 8 year old daughter wants to do a Nightmare before Christmas halloween party with a circus twist in our backyard. She wants me to be Sally and my husband to be Jack, and all three of our kids be lock shock and barrel...
I have some interesting ideas in my head, but I'm more morbid in thinking than she and my scare level is way above hers. She says she wants it scary but fun but all my head is thinking is making scary carnival games and a freak-tastic haunted house.
Do you guys have suggestions on how I can keep it somewhat scary but keeping it kid friendly? I have generic props from the past few halloweens and have stockpiled on everything under the sun to get started on making props and games..

ANY SUGGESTIONS APPRECIATED!!