I think I will say something to the teacher.

I have no issue with good behavior being rewarded per se (tho, I tend to agree with you Mad B, you should be good/try hard because thats who you are, not because you get a star)

I guess I am just feeling like they are labelling my baby as "not as good" as so and so because he would rather play blocks than do crafts like the other kids (and therefore not be doing what he is told).

Sensitive mummy moment LOL