My new letter ID kit (for small group instruction) is finally being released by Really Good Stuff. This kit includes severals sets of magnetic letters (in soft, touchable foam) with blue consonants and red vowels, so students who are having trouble learning letters can touch and feel how letters are made.
Also included are letter formation cards, sorting mats with multiple ways to sort letters, and a letter ID folder for keeping track of which students in your group need what. The kit includes lots of help for you, including cards with many ideas for teaching letter identification in small group instruction. Check it out at Really Good Stuff!