Note: if you decide to do one of these Diorama Ideas listed below, you may wish to check out the two video posts about a teaching clip from "The Nazareth Jesus Knew" A Television Series" on real archaeological-connections, describing what the house's roof would actually have been like, interesting stuff.
Shoebox Art/Storytelling Lesson Idea
including cool reflection activity
Originally Posted by Neil MacQueen
We did this story last year in Rotation and had a very successful ART Project.
Summary of Lesson Activities:
Using shoeboxes, the kids made their own story telling kits. They made the house, clothespin people, lame man, his friends, the stretcher. Sticks were glued around a hole cut in the shoebox. The shoebox was laid on its side creating a little theater.
We opened with basic bible study of the story then made the kits and practiced retelling the story.
After the pieces were assembled, we all gathered in pairs to retell the story to our partner.
The kids were encouraged to use their kit to retell the story to a parent or sibling or friend. We closed with a prayer to help us do it and help the person we told the story to want to be close to Jesus.
Lesson thoughts:
There are two miracles in this story:
1. It's a miracle that Jesus can forgive sins! Only God can do that, and having your sins forgiven is the biggest 'healings' a person can ever have.
2. The miracle of the man's friends, who believed in Jesus enough to go the extra effort and risk offending the crowd to help their paralyzed friend.
As a Reflection Activity, have students write as many sins as they can think of on a long long BANDAGE. Then wrap a student in that bandage so they can't move. Discuss how our sins keep us from living life the right way. Discuss how our sins can "make us fall" (which should be metaphorically obvious if you have wrapped the student's legs together!). Then ask about "how Jesus heals us by forgiving us". Begin to unwrap the students. But also take the opportunity to demonstrate that our "healing" doesn't mean we can't re-bandage ourselves, get ourselves in a bind again with our sins. The difference is that God no longer counts our sins against us, and wants to help us live forgiven lives. This is an important nuance! 
When you're finished, give each student a BANDAID with the words "Forgiven" written on it. Use the application of the bandaid as your closing reflection. (Theologically speaking, God's Grace promotes healing! What else can? Prayer?)
(This is the basic idea. I trust you will flesh it out!)
