This is one of those activities that we return to many times each week. I regularly peruse old magazines for pictures of recognizable items beginning with each letter of the alphabet and pass them to Wren, five or six at a time, to add to her abc album: a soft cover photo album I got for $1. Each page has a colored dot sticker with a letter of the alphabet written on it. Our album actually has a handy pocket inside the back cover to store the new pictures until she sorts them into their appropriate pages. We love.
Hop over to Preschool Corner for more inspiration.