First of all, how have I not come across this instructables website before!? It's so much fun looking at what other people have made and got some really good tips in here.
Just thought I'd show you some of the stuff I've made in the past.
Here's a hand puppet I made a couple of years ago for an entertainment company in the UK, I mainly made her out of foam, covered her a bit with latex, acrylic paint and PVA. I wanted to do her teeth with materials I had lying around on the cheap so I used some left over foam board, glued them together in layers and carved out the teeth shapes, painted and covered with PVA for to give it a bit of a shine. She was really good fun to make!