Could also be used in a spelling center.Lego-out the words. Lego learning games - exploring Lego and play dough. This is a great activity for sensory play, imaginative play, letter recognition and sight words.
Q-Tip Letter Painting (Preschool, Kindergarten Activity)--great for teaching pencil grip, fine motor skill practice & letter formation. Makes writing letters more than just practice--make it an art project!
Learning basic sewing with a polystyrene plate, yarn, + plastic needle. I remember doing this with craft mesh when I was a kid and then graduating to sewing buttons by hand onto little pillows and pockets.