Free-Reading.net is a great resource which provides literacy training for children. Many of these resources are easily adaptable to ESL classrooms. I've adapted four lessons for children's classes (as well as adults who like to have fun!)

Newspaper Crazies - regular and irregular verb recognition
Read and Rhyme - pronunciation and vocabulary recognition through rhymes
The Bell Game - compete to see who pronounces target words correctly
Slap That Word - word recognition game