Welcome to our singular gang of wordsters, nanowiz! Hope you stick around!

Here's a good start on your question, form a site called Online Etymology Dictionary:

booby - 1599, from Sp. bobo "stupid person, slow bird." Booby prize is c.1900, an object of little value given to the loser of a game; booby-trap is c.1850, originally a schoolboy prank; the more lethal sense developed during World War I.

Helen and bel, you better leave this thread alone...don't start!

[edit:] Here's the Etymology/booby prize page link url, sorry I omitted it:
http://www.geocities.com/etymonline/b3etym.htm