OK, we did this today - went to the EARL store and found a mini muffin pan, and two large bags of used crayons - whole deal cost us a dollar!
Peeling the crayons took the longest - I peeled, preschooler broke the crayons and put them in the tray, teenager supervised.
Less than 5 minutes in the oven they were melted enough to become one, but not enough to become muddy. Cooled on the counter for 20 minutes, then stuck them in the fridge - after a half hour in the fridge, they popped right out of the pan!
We still have a ton of crayons left, and 12 new funky crayons.
Someone on another forum said they were going to give them out for Halloween, as well as some candy. A good Idea to me! e might do that as well. But I'm going to find the exacto knife for getting the papers off from now on!