Dolch sight words and a portable word wall

It's been a while but big have I been busy! I have been getting ready for the end of the school year and trying to figure out a way to differentiate my sight words next year. For starters I am making a portable word wall for each student!

This is available in my TPT store. I am also making several activites for each set of five dolch words preprimer through second grade.  

These and other activities are also for sale in my TPT store as well as a pack.   Now I need to make an assessment for the dolch words.  I am going to dictate sentences to the students and see what words in context they need to practice. I have found that many students can write the words out of context but struggle using them. I have also played with the idea of incorporating my phonics assessment in with theses assessments as well, not sure how this will work yet. Last, for the tricky part making groups and organizing them. I already had five phonics groups going this year, with differentiated sight word groups how will this work? A few questions I am still working on: how will I assess phonics with sight words, how and where will I keep all the materials and when will I introduce the new words? What I do know is not all students NEED the same list of words so they shouldn't waste their time on words they already know. What do you think?