Well, I solved that problem. I needed to have a separate tile for each of the letters in all of the words.
New problem-some of the color words have double letters. I can't set it so that the double letters can go into either place in the word-they just bounce back to their starting point. If I tell it one letter to one place then the child could spell the word right but then it would tell them they spelled it wrong.
Here's a link to the current problem:
Double Letter Problems Game
Since I made the little fairy for the game my mind has been thinking up all kinds of ways to embellish the game to coordinate with Dixie's story better. I just need to learn to draw.....