I know that babies should avoid honey, but what about the honey thats in foods like graham crakers and certain cereals?

Honey may contain Clostridium botulinum spores that can cause infant botulism- a rare but serios disease that affects the nervous system of infants under one year of age. However spores are inactivated when manufactured food products (such as cereal and nuts) recieve a roasting heat treatment. Graham crackers or cereal, for example, would not contain any viable microbial spores. Thereby making these products safe for any age. This information comes form the National Honey Board Sources: http://www.honey.com/consumers/honeyinfo/faq.asp?