Classical Indian Dances Directory
I read "Lakshmi and the clever washerwoman" from Festivals Together: A Guide to Multi-Cultural Celebrationand photocopied some of their Rangoli designs for the children to color.
I found this story to be a good fit (in the past, children have made their own divas, so they are familiar with how this holiday is celebrated); however, if you are looking for a more complete resource for storytelling, try Indian Tales and Legends
Other wonderful designs to color can be found in Paisleys and Other Textile Designs from India
My fellow teacher found this wonderful YouTube video of a family creating their Rangoli. We would like to do this on the floor with colored sand one day!
Here's a link to some craft projects and a Creating your own Rangoli how-to.
Finally, we ended the day by sampling some special Indian foods.