We decided to go the reading/rhyming route this time. Using some small wooden alphabet letters and a homemade cardboard pattern we rhymed the word "old". If you don't have a wooden alphabet, try using the plastic magnet letters or even the foam ones.
A found the right letters for his template and then we set about looking for 'real' words that rhymed with old by trying out each of the letters in the alphabet.
Our favorite part of the activity was making silly words. A couldn't help laughing at the sound of some of them.
**Update: I had no idea my little set of letters would spark such interest! Unfortunately they are something I found in a Fijian nickel and dime store for about $5. There was no brand or "made in" information on the packaging or on the wooden box itself. So sorry to everyone interested. :-(
Check out Carrie's comment below to see some links to other wooden alphabets. Thanks Carrie!