1. I think that story telling can be used in grammar practice or as an ice-breaker activity in the first session of the lesson. We all know that people in general, love stories. One of the best ways to introduce the past simple for example is through a story. I like to tell a story at the beginning of the lesson and sometimes, even act out bits of it. I use whichever method I feel more comfortable with. Often students, young ones in particular, want to act out bits of the story themselves. I always try to encourage them to do this: it enhances their understanding.
2. Controlled practice activities can be boring sometimes, so one way to make them more communicative and motivating for the students would be by presenting them in a less controlled environment. For instance, the board could be a wonderful resource. You can use it for all sorts of things: playing hangman to practice specific points - ing forms, for instance, or adjectives. Crosswords can be used for practicing countable and uncountable nouns, plurals, irregular verbs and many other things.