I actually saw this in use in a K class at the Jewish Academy here in town during my tour and was impressed.  A fun way to teach kids vocabulary using the computer. 

http://www.zigzagworld.com/hebrewforme/ 

They have a graphic literally of various scenes like the breakfast table, the classroom, etc. and the words for various items you can put in the room.  You drag the word over to the room and it puts the graphic of the item in the picture.  Pretty cute.