She shot the first Baby Einstein video in her own basement with a borrowed camcorder, a few puppets, and an $18,000 budget. Five years later, she sold the company to Disney for a reported $25 million.

Taking on Baby Einstein’s DVD empire is a formidable task. But Juno, a precocious puppet with big googly eyes, pigtails and a red dress, is up for the job.

In 2000, Baby Einstein sales topped $11 million; projected revenue for 2001 is $17 million. Today, the collection includes seven videos, DVDs, flashcards, toys and board books. To date, more than ...