Grade 1 students did a reader's theater of Little Red Riding Hood from a series called, Playtales, by Moira Butterfield. The books include ways to build costumes and props. I used some of them but the students mainly did backdrops. I also have a box of props that are odds and ends I've collected over the years and students took from the box whatever grabbed their fancy. I have done this holding the book in front of me and turning the pages for the students or as in the video I scanned the pages and had the story on the smartboard (or LCD projector) for students to read from. This way everyone reads along and I find the rest of the class is more engaged. The microphone helps project students voices that are too soft and lets others ham it up. I also have a student run the computer, a video camera, and regular camera. Usually the comment is, "My arm is sore!" by the time they finish the play. I also choose a have only one child read one narrator speech bubble. This way the entire class is included. You could also add two narrators per speech bubble if you run out of parts. The speech bubbles are color coded which helps students with reading their parts. Some of the vocabulary is hard for 1st grade.
Here's a short video: