I mentioned storyboards in another thread as a fun aid to storytelling, and to encourage children to make of and tell stories of their own, but it definitely applies here as well!
If you aren't familiar with the idea, you use a felt backdrop. Really just a large piece of felt glued to wood, and I know that a fleece blanket works in a pinch:)
I bought a big set of felt nursery rhyme characters such as the one I am pasting below, but you can also find free templates all over the web that require printing and adhering to a piece of felt backing.
You then can use the felt nurseryrhyme characters to act out the nursery rhyme, move them whilst singing the nursery rhyme, or similar. Our library story time does this every week for a different rhyme, and it is always a bit hit, usually with a child chosen to get to 'move' the characters accordingly.
Here is a largish set that includes a huge variety for various nursery rhymes, and these can be used for story telling later, narration practice, and more:
http://www.amazon.com/gp/aw/d/B007R6WDS2/ref=pd_aw_sbs_8?pi=SL500_SS115