I actually prefer to put my file folder games in a 3-ring binder to save money and space. In this game the kids are matching the center of the letter to the outline. Because the letters are cut out individually it helps them learn the shape better. Here is what it looks like all printed out, laminated and cut.
Download Alphabet Match Up
The file has 5 different pdf files so you can print out each file individually
Some other ideas for this game would be to have kids use a dry-erase marker to color in the letters. Or another idea would be to laminate the pages and have your kids make "snakes" out of playdoh and then placing the "snakes" on the letters to make snake letters (also great for developing a child's fine motor skills). Or you could cut out all of the letters and mount them onto squares to make a matching game where they flip the cards over and match the outline to the center. The possibilities are endless.
To encourage learning have the kids say the letter with you and the sounds as they look for the letters - the more senses involved the better they will learn it!
Let me know what you think!