My father was born in the United States. However his childern and wife were born in another country.

My father and mother has passed away.

Do my father's childern have any rights to US citizenship or some type of residency.

If your father didn't register your births or apply for U.S. citizenship for you, it's probably too late. The requirements given by USCIS include sponsorship by a U.S. citizen parent. You may want to check with your local U.S. embassy/consulate, however.
http://uscis.gov/graphics/services/natz/faq.htm#q24

I looked a bit further on the USCIS website and there was a question about a parent who has died.

26. If the U.S. citizen who transmitted citizenship to a child through one of the scenarios described in # 24 above or who could have applied for naturalization and the issuance of a Certificate of Citizenship through the procedure described in # 25 above has died, can the child still obtain a Certificate of Citizenship?

A person who became a U.S. citizen through one of the scenarios described in # 24 above can be issued a Certificate of Citizenship at any time in his or her life as long as he or she has not gone through the difficult procedure of renouncing U.S. citizenship. If the person has not yet reached their 18th birthday, a legal guardian can file the application. If the person has reached their 18th birthday, either the person or a legal guardian can file the application.

A child who could have been the beneficiary of an application filed through the procedure described in # 25 above, except for the death of a U.S. citizen parent, can become a U.S. citizen and can be issued a Certificate of Citizenship, if the following conditions are met:


The application must be filed within five years of the death of the U.S. citizen parent; and
The application must be filed by either a U.S. citizen grandparent or a U.S. citizen legal guardian; and
The child is under 18 years of age; and
The child is not married; and
The child regularly resides outside the United States; and
The child is temporarily present in the United States pursuant to a lawful admission and is maintaining such lawful status at the time of the interview and adjudication of the application; and
The person in whose legal and physical custody the child lives with outside the United States does not object to the application; and
The child was the U.S. citizen's legitimate child, or was legitimated before the child's 16th birthday (stepchildren or children born out of wedlock who were not legitimated before their 16th birthday are not eligible for this procedure); and
If adopted, the child meets the requirements of section 101(b)(1)(E) or (F) and had a full and final adoption; and
The citizen parent has lived at least 5 years in the United States, and at least 2 of which were after the citizen parent's 14th birthday; or
If the child's citizen parent has not lived in the United States for at least 5 years, 2 of which were after that parent's 14th birthday, at the time of the citizen parent's death the citizen parent had a parent (the child's grandparent) who:
was also a U.S. citizen; and
at the time of the citizen parent's death had lived in the United States for 5 years, at least 2 of which were after the citizen grandparent's 14th birthday.
Once all of the requirements have been met, any U.S. citizen grandparent or duly appointed U.S. citizen legal guardian can file an application on behalf of an eligible child. The child must be residing outside the United States in order to be eligible for this benefit, but the applicant can reside in or outside the USA. Although the cutoff date for applications pursuant to 322 filed by a citizen grandparent or by a citizen legal guardian is five years after the death of the citizen parent, the joint interview of the applicant and the child beneficiary can be conducted at any Immigration Office in the United States that conducts these interviews at any time while the child is still under the age of eighteen years.