As far as crafts go, I'm big on giving kids alot of room to create. Sometimes limits and problems to solve actually draw more creativity out of kids than complete unguided freedom. Besides time, space, and materials for growing creativity and fine art skills, I'm also big on letting them do things and make things that tie into all the subject areas, not just Bible. (I once found a great science/craft book for making insects but haven't seen it lately to give you the name. I think it was at Brighton Library in the Children's craft section) I'm not big on coloring sheets, throw away crafts.
That being said, Crafts From Your Favorite Bible Stories by Kathy Ross [the Millbrook Press, 2000] is a craft book with activities that are especially clever. I borrowed it yesterday at Rundel and brought it home. Very clever stuff!
Kathy Ross has written some great seasonal craft books, too! The way I understand it, she was (or may still be) a preschool teacher so many of her books work well with 3-5's.