I have been trying to think of some ideas to take care of this problem.
I took this idea from mo's class room and changed it a little. I made each kid an envelope with their name on it. They each get 3 colored cards. When they misbehave, I warn them that I will pull a card if they don't stop.
When all cards are gone they must hand over a beloved webkinz. We discussed the punishment before hand and the webkinz seem to be their most prize posessions. Each sunday they get to start over. It's a 3 strikes you're out sort of deal.
The kids are very concerned about losing any cards at all. Both the older kids have already lost one each. (I started yesterday) Though, Ella is not quite grasping the idea. She thinks pulling a card is a good thing. Its more for the older kids anyway.
If anyone else has some suggestions in this department, I would love to hear. I feel I need all the help I can get.