We've also found some fun workbooks that help encourage letter recognition and develop fine motor skills. Two that we like because of the fun pictures and worthwhile activities are:Little Kids...Trace from Scholastic
and The Complete Book of the Alphabet from School Specialty Publishing.
We love Melissa & Doug toys and puzzles around our house. We've found two in particular that are fun for learning upper and lower case letters:
What fun and games are going on at your house as you get ready to head back to school?