Check The Storyteller - www.thestoryteller.com - they have lots of stories and kits. Or you can make your own using Pellon (interfacing). Just trace the characters onto the Pellon with permament markers from a book or clip art.
Be sure to check e-bay-I got a finger puppet set wtih tape for $6 ppd-can't beat that!
And I just had a catalog show with my friends-if you have $100 in sales you get 1 half price item and $15 in credit-that's how I got Aesop's Fables set and the ocean set-otherwise they were too pricey.
If you do a catalog show be sure to check with your local preschool/sunday school or library since they may be interested in buying a set too-I sold a set to my son's Montesssori teacher which is what helped me hit the $100.
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