Tool-using New Caledonian crows
Nature has another article on those amazingly brilliant New Caledonian crows. The twist this time is that they are finding that young crows raised by hand, never having observed other crows manipulating tools, will spontaneously make and use tools on their own. Here's a bird carrying out their test; food was placed in artificial crevices, and they either used sticks or the edges of leaves to push it out.

Tool use by a naive New Caledonian crow. a, A hand-raised juvenile uses a twig to retrieve meat from an artificial crevice. This individual has never witnessed tool use by a conspecific or by its human foster parents. b, Close-up of a tool made from a Pandanus leaf (provided by the Royal Botanic Gardens, Kew, London) by the same bird; scale bar, 1 cm.
There's also a 1.5M QuickTime movie of a crow in action.
One thing bothers me about the article: the authors say, "The use of twigs by these birds to coax out hidden food seems to be an instinctive skill." It seems to me that this could be the consequence of some capacity for abstract reasoning, and I wouldn't lump that into the category of "instinct."
Kenward B, Weir AAS, Rutz C, Kacelnik A (2005) Tool manufacture by naive juvenile crows. Nature 433:121.


While I'd love to see abstract reasoning in crows, because I'd love it, I'm doubly suspicious of it--if they've never seen anybody use tools, it seems almost more likely to me that using them would be an instinct. If they spent a lot of time playing with twigs, on the other hand, as they're growing up, and learned "Hey, neat! I can poke stuff with this!" that'd be a good argument for abstract reasoning, but if they just see a hole and start looking around for a stick, I'd have to wonder. So I guess I'd have to know what the crow did growing up.
I am reminded, for no apparent reason, of various cases of feral children who can't use their hands very well, never mind tools, because they never see it happening as they grow up. Obviously we've got so few samples there, and so much is anecdotal, that it's impossible to generalize, but it seems like the things you'd do in the absence of any contact with your own species might be more likely to be instinctive. 'Course, that's kinda had to test, god knows...