Toys moved by hand - either by putting your hand inside the toy or by strings on top of it.
Most often they are made of various soft materials. Some are made of paper, wood or even tin.
How to Make a Muppet Style Puppet
Go here to see the guide.
PUPPET BUILDING & BUILDING MATERIALS
Large resource of puppetry building books, patterns, tutorials, and materials.
Easy Animal Puppets
Here is the page.
I love this kind of simple puppets. I ve seen them on fairs long time ago.
Check this page for description and patterns.