J.W.
When my brother was little we did drop the clothes pins in a container while wearing a hand puppet on our hand.
Any type of relay. Maybe they wear a hand puppet, run to a place, then the next person has to put the puppet on before they can go.
Simon Says, but they move like marionettes? Simon says lift your right arm (lift it like a string is attached)
Make a puppet of some sort.
Not related to the puppet theme, but for my son's party a few years ago I wrote clues to lead them to their goody bags. I wrote them on card stock (too thick for the computer) then cut them up into several pieces. The kids had to put the puzzle together, read the clue, then go find the next envelope with the next clue. He said that was his favorite part of the party. :) I did it at the end.
Have fun!!