Match is the new fun game we play at our house. I bought James a deck of picture cards (from Mardel $1) and we spread out 4-6 cards (we started with 3) and then hand him a card and he makes a match. He thinks this is the best darn game on the planet and we like the concentration that it takes him to do it.
He has to scan all the cards and search for the right one and then when he finds it he puts his card on top and slaps the pile and yells, "MATCH!" It's so fun. I'm going to start doing it with letter cards soon, but the pictures are a nice start.
FYI: Mardel is such a great place to find educational toys. I got about 5 decks of cards (all different skill) and several Preschool song cds that go over numbers, letters, sounds, counting, etc. It's super cheap and lots of fun. Also, you must must must check out the blog on the right hand side called, "I can teach my child!" It has some fantastic ideas!!!