As promised, here are the puppet ideas for you to take, and run with. These are great for children to make, and at the very end there is even a puppet theatre you can make out of those tri-fold posterboards (the ones you use for science fair projects).
Go forth and have fun!
Many thanks to the following sources:
E-how Facts: Puppet Use in Preschool
Socyberty.com: Role of Puppets in Education
Learning Toys: Benefits of Puppet Play