Ten Little Indians
   One little, Two little, Three Little Indians,
   Four little, Five little, Six little Indians,
   Seven little, Eight little, Nine little Indians
   Ten little Indians Boys/Girls. >>

This is one of our kids favorites -- but we add several more verses:

Pound, pound pound the tom-toms (make drums on legs)
Paddle, Paddle, Paddle, the canoe  (Row boat)
Oohwah-Oohwah Shoot the arrow! (make bow and arrow in air)

another Indian favorite:

I'm a little indian; With feathers in my hair.
Heres my bow and arrow -- that flies thru the air!
I sleep inside a teepee,
And fish in the lake for trout!
and when I'm very happy -- I dance and sing and shout!!
(They love making the indian sounds at the end!)