Some of my favorite projects, and the ones that went over the best with the kids included:
* Wire sculptures for the story of Moses--we used the green florist wire for the sculptures and small pieces of firewood (with the bark still on) for the bases. The kids fashioned the wire into whatever they visualized from the story. We had some pretty interesting designs and storytelling pieces. We also did this with a lesson dealing with emotions and that was really cool. Lots of twisted wire and long spirals and crazy stuff.
* We also tie-dyed t-shirts for the story of Joseph and his coat of many colors and the kids absolutely loved it. I recommend using a kit from Michaels or another craft store rather than the Ritz dye, the colors are brighter and last longer.
* Right now we're working on creating "Peace Tiles." Each child is creating their own mosaic using craft mosaic pieces --fixing them to 8"x8" plywood squares. When they're done we'll connect them with eye-hooks and wire and hang the whole piece in our churches companionway. We cut extra tiles as well in case anyone in the congregation would like to create their own peace tile to add to the project.
Good luck with your projects