I found the C.U.T.E.S.T picture dictionaries. I am a huge DJ Inkers fan...so these caught my eye pronto! They are from Kristin and she blogs over at A Teeny Tiny Teacher. You can visit her blog by clicking her button above.
These dictionaries are perfect. However, I don't really use them as a "dictionary/" :-) I use SF Reading Street and we introduce a letter each week. I take a single letter page and put it up on my projector. I have the kids choose one picture to write about. I also write one or two of our high frequency words and they need to use those at least one time in their writing. They must choose a different picture to write about each day! THEY LOVE IT!!
If I have a few extra minutes...I will even do a quick FIX IT with one one of the pictures. I will write a sentence on the board and they fix it.