I am one of those that feel under 2 years of age is too young for a time out. Most of them at that age just don't understand it. If a child under 2 is misbehaving here I remove them from whatever it is they are doing and tell them in simple words why. "We do not take toys from our friends. That is not nice." I place them in a different area or give them a book to read. They are usually distracted enough to do the new thing and then they just come back to the group on their own.

I have a 3.5 year old that I was having issues with and she pretty much lived in time out land lol. I finally decided to try something new. I have green and pink chairs and she likes to sit on the pink one. If she is good all day she can sit on a pink chair for afternoon snack. This has helped wayyyyyy better than timeouts. There have been times that I have taken away a toy she really likes to play with as well. For her, this consequence is much more severe because she didn't really care if she was in time out or not.