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Have everyone sit around in a circle.
Pick any letter of the alphabet.
Pick a subject (i.e., At the Zoo, Riding in the Car, etc.)
The first person uses the selected letter to create sentence for the beginning of a round robin-type story. The next person uses the next letter. Each player only has 10 seconds to come up with something.
For example, say the letter is M and the subject is At the Zoo:
First person: Monkeys are smelly.
Next person: No, I think it's the elephants.
Next person: Only girls would say that.
Next person: Please can we talk about something else!
Next person: Quails. Have you ever eaten one?
And so on.