I came across this clip on Youtube, by soundreaders, discussing the use of SPELLING STICKS.
http://www.youtube.com/v/uMkvO8bASNY&rel=1I found them on Amazon,
http://www.amazon.com/Spelling-Sticks/dp/B000HMOL1UIt's basically icecream sticks with a letter written on the top of each!
You get this (Includes 45 wooden Spelling Sticks: 3 of each vowel, 2 of commonly doubled consonants and 1 of least common consonants) in your amazon purchase.
How easy would that be to make!!! ($1 or $2 of plain icypole sticks at a craft or discount shop...bingo, you've made your own manipulatives.)