My reading program comes with a transparency that uses all of the words in a sentence. Sometimes I play the "Vocab Game" with my kiddies. We all gather around the overhead. One student reads the sentence aloud. Then another student identifies the new vocab word (it's underlined). Then a third student tries to guess what the word means. Sometimes it takes a couple tries before they get it right, but we brainstorm how using context clues help us figure the meaning to the new word.
Now the game part. Students return to their seats and I have flashcards of all the new vocab terms. I hold up a card, and it's a race to see who can raise their hand first and CORRECTLY define the word. If the definition is correct, I hand the student the vocab card. Once I have gone through all the words and all the cards are passed out, the students with a card go to the back of the room. They have 10 seconds to arrange themselves in alphabetical order. So while they are scrambling around trying to arrange themselves correctly, the rest of the class watches and we count down from ten to one.
It is quite fun.
They really seem to enjoy it.