Santa Claus and your child

"Yes, Virginia, there is a Santa Claus" was the classic written by Francis church back in 1897 for New York Sun when an 8-year old child asked if Santa was real.
As a parent, this is one of the questions I dread the most — of course, this only takes second place after the much dreaded "how do you make babies?"
I have heard that some child psychologists advise parents to debunk the Santa myth. Others, however, say the exact opposite.
As parents, I guess, it is our responsibility to gauge our own child's feelings and need. We can either take the same direction that Francis Church did; OR, we can take the moral high ground and tell the "truth".
Seriously, I still do not know which direction to take. As soon as I find a more interesting explanation (=excuse) on why there are Santa Clauses in every street corner then, I will probably have my answer. Thank God, I still have a few more years to think about it.
What about you? What direction did you take?
/photo source: images.usatoday.com