I wanted a letter sorting peg puzzle for my little girl's 3rd birthday. She loves puzzles, but is still too rough to treat cardboard jigsaw puzzles with the care that they require, so I still prefer wooden puzzles. She loves sorting out the letters to fit into the wooden tray, some of the pieces are very similar in shape, but they are different enough for her to realise when she's not quite got it right, which is great. Under each letter is a picture - e.g. under a is a picture of an apple, which reinforces the connection between the letters and the words that they begin. Each of the letter pieces has a little plastic peg, which makes them easy to take in and out (unless you just tip them out, as is my daughter's preferred method) and it also makes them easier to turn. I have had problems with similar shape puzzles in the past without the pegs and it has cause my daughter frustration as she finds them fiddly.
This is a good quality puzzle and for what it is, I think it is excellent value. I haven't been disappointed by any of the Melissa and Doug products that I have purchased for my children and this is no exception. The only criticism I might have is the the holes are slightly bigger than the pieces, which whilst good for a beginner, who is struggling with co-ordination, is slightly less aesthetically pleasing when finished - although that is from my perspective - my children don't care at all!