J.O.
Just did this with my 4 yr old...A great variation on musical chairs. Put papers with numbers (however many kids you have minus one) on the floor in a large circle. Play music and have them walk in a circle around the numbers and when the music stops, they stand on the nearest number to them. Have litttle pieces of paper with the same numbers on them in a bowl. Pick one and the person on that number is out. Pick up their number and continue until there is one person and number left. It prevents pushing out of musical chairs because they don't know whose number will be pulled.
You can also google kids birthday games and get lots of ideas--both indoors and outdoors.
Sorry, my mistake --you have the same number of papers as children to put on the floor so everyone stands on a number. Then draw the number that's out.