Here's how I do them: http://theworldaccordingtoeggface.blogspot.com/2012/01/frozen-protein-drops.html I add protein powder too for an extra boost. They are great instead of ice in smoothies or just popped in your mouth for a cold treat.

are yogurt bites made of the same thing as the coating on yogurt covered pretzels/raisins? if so....maybe you could take this recipe and modify it ! http://hungrybrowser.com/phaedrus/m022803.htm#3

the above link (by megan T) looks yummy, but maybe not so great for a toddler snack what with all the butter and powdered sugar (although some sugar will be necessary of course).

here's the ingredients for Gerber's yogurt melts: CULTURED REDUCED FAT MILK, SUGAR, STRAWBERRY PUREE, NONFAT DRY MILK, TAPIOCA STARCH, GELATIN, NATURAL STRAWBERRY FLAVOR, LACTIC ACID ESTERS OF MONO- AND DIGLYCERIDES, FRUIT AND VEGETABLE JUICE COLORS, SODIUM ASCORBATE (VITAMIN C), ALPHA TOCOPHERYL ACETATE (VITAMIN E), VITAMIN A ACETATE.

so it looks like they use a combination of powdered milk (or protein powder would work perhaps), tapioca starch, and gelatin to thicken the mixture enough. i bet you could play around with those and make your own. or maybe i will, and i'll let you know! :)

oh, but one thing Megan T's link does seem to have right is draining the whey from the yogurt, as Lori (the asker) also assumed. or, i suppose, just use Greek yogurt.

Gerbers ingredients are terrible for growing children. They need full fat and no artificial ingredients.

And note the slightly better ingredient list for HappyBaby brand which my kids love:

cultured organic vitamin D fortified 2% milk, naturally milled organic sugar, organic blueberry, organic blackberry, organic strawberry, organic tapioca, organic pectin, natural flavor, inulin, live and active cultures streptococcus thermophilus, bulgaricus, lactobacillus acidophilus, B. lactis, lactobacillus paracasei, lactobacillus rhamnosus

I'm planning on trying this sites recipe:
http://www.deejayssmokepit.net/DehydratingDownloads_files/YogurtDrops.pdf