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I ordered a letter "F" from craftcuts.com, and painted it myself. (For a 12" letter it was about $10). You can order them in virtually any size (up to 48"!!) or font, and they look great!

i received letters for a baby gift. she bought the wooden letters from Hobby Lobby and painted the edges and then put decorative paper on them. they are about a foot tall. very thin though. you could call some sign stores. or try etsy.com

I bought a paper mache letter, about 12" tall, maybe bigger, from Frippelous on etsy. They make them in great colours, and they're so light, but solid.

etsy vintage search on "letter" or "initial" -- just keep an eye out for unsafe materials

They have a big selection of letters at craft stores like JoAnn... 3' letters are about $15, unfinished papier-mache. You can just paint 'em yourself.

I've run across large, inexpensive letters at discount stores like Marshall's, TJ Maxx, etc. on a regular basis.

Know any craftsmen? My dad used to cut puzzles out of pieces of wood when we were little. Then you could control the font and color and get exactly what you want.

I also bought the paper mache letters from JoAnn Fabrics (they cost me $7 each). They are HUGE (maybe 2.5 feet tall) and I love them! I painted the sides and then glued cool paper to the front, it looks great.

Have you looked at movie-theater marquee letters? They're fairly inexpensive and come in a variety of sizes.

http://www.spantonreaderboard.com/letters/snaplok.html

http://www.spantonreaderboard.com/letters/slotted.html

I've also ordered from craftcuts.com, and the letters came quickly and were just what I wanted! I got out my spray paint, but I think you can order them painted as well.

I've also used craftcuts.com they have lots of fonts and many sizes too.

Yep, I was going to suggest Jo An's also. They have those large cardborard or chipboard letters that would be so easy to decoupage or paint.

I bought my letters from
http://www.woodlandmanufacturing.com/wood-letters.html

There is a shop in San Francisco called Timeless Treasures that specializes in vintage letters like this. I don't know if they ship them, or how much they cost, but the store owner is very nice and I am sure would try to help! here is their blog/site:
http://www.timelesstreasuressf.com/

Pottery Barn Teen has large iron letters. There are actually two kinds, one for boys and one for girls (difference being in the design - girls more flowery). The letters can hold pictures, mementos, etc. They are $15 each.