momma and 10-day-old kittens

Question
Hi, Amy:
We've never had a cat for a pet, until ... Early this summer, a wonderful calico wandered up and adopted US!
We placed posters all over and in mailboxes, in case she had a family in the area.  No replies.  Kids fell in love with her.  Now "Beauty" is part of the family.  Not long after joining us, she became pregnant [pretty sure the elusive barn cat who lived here before we did, is daddy].
She clearly preferred being outdoors and only ventured indoors when the kids really coaxed her. However, she came inside when in labor, found a cozy corner, and gave birth to five sweet kittens. Nursing seems to be going well; the kittens are growing dramatically, snuggling with momma/each other when not nursing and just starting to open their eyes.
At about a week old, I let my children start holding them, individually, for brief periods.  Is that okay?  
I just read on another site that we should be feeding Beauty, the momma, KITTEN food now? I had no clue. She has a constant supply of dry Meow Mix and fresh water. About 2x/day we offer a can of 9-Lives, which she seems to like (some flavors more than others). We also offer a small bowl of milk from time to time, but she doesn't show much interest.  
So I should switch her now to KITTEN food or keep doing what we're doing or what??
I didn't realize I had so many questions, and I'm just now getting to the one that prompted me to get online tonight for answers!  Up until about an hour ago, Beauty's seemed very content in the box w/ beach towel in our laundry room, near food and litter box.  I was shocked, then, to find her relocating her kits ... to a messy pile of magazines in our bedroom!  She can't make her nest there; it doesn't work for many reasons. I talked to her gently as I carried the two kittens she had relocated BACK to their box. Moments later, she had another one in her mouth, heading right back to the bedroom.  Upon finding the door closed, she turned, looked around then carried the kit into the living room, very near the spot she'd chosen for birthing (and where they stayed for the first few days before I made the nest in a box).  She then carried the kitten BACK to the box, but seemed very unsettled. WHAT IS SHE TRYING TO DO?  WHAT DOES SHE NEED? I thought maybe she decided they need more room? I tried to help by putting a fresh towel in a dark area under a table, then carried the kitten she'd been toting around to the "new" spot (with her following me, of course). At a loss, I then moved the whole box under the table, next to the fresh towel.  She carried the kit back into the box and that's where they are now, but I can tell she's not satisfied.  
I'm sorry for writing a novel here.  Clearly there's much I need to learn in these unfamiliar circumstances!
Any suggestions you can offer will be greatly appreciated.
Thanks and blessings,
Jane

Answer
Hi Jane,
Sounds like this is keeping you busy!!  

For starters, the kids should not be handling the kittens yet.  It can make mom extremely nervous and she could kill them or refuse to nurse them.  She is moving them because she doesn't want them being handled by you guys.  It may not be what you want to hear, but she needs to be left alone.

Kitten food has more nutrition in it and she should be given Kitten IAMS wet food if you can do so.  The kittens will begin eating it at about 4-5 weeks old.

The mom will become more social and friendly once this is over with AND she is spayed.  Are you able to find a place that will "fix" her and her babies at low-cost?  Almost every area has a program these days, so please let me know if there's anything else I can help you with.

Thanks!
Amy