The Dolch sight words are a set of 220 words that are used frequently in writing. Print each word on a card and flip through them with children to help them memorize the words they see.
Spread flash cards out on the floor and toss bean bags onto the cards. Have the kids read the card their bean bag landed on.
Take a walk with students and have them point out words they see that are on their Dolch sight words list. A variation on this is for the teacher to label items in the classroom with the sight words list so the children can associate them with the object.
Many websites provide computer activities to help kids learn sight words. Gamequarium.com offers a list of games to play online, as does the Mansfield, Ohio/Richland County Public Library site.
You can print some sight words on several sheets of paper and crumple them into balls. The kids can have a snowball fight with the balls and read the sheet closest to them.
Tie a magnet to the end of a fishing rod and put paper clips on fish with sight words written on them. Have the children fish for the sight words.
Crumple pieces of paper into balls, or use bean bags. Each child takes a turn throwing the object at the trash can until someone makes it in. Then the child can read a flash card with a sight word on it.
Let the kids use modeling clay to make objects and a Popsicle stick to carve the sight word for the object into it. It helps the children associate the words with the objects they represent.