another thread here, might throw up a few ideas http://forums.overclockers.co.uk/showthread.php?t=18611873&highlight=team+building
Interesting that the same question can be asked three weeks apart, the first thread is three pages long full of unhelpful japery, whereas this thread is a couple of pages of some moderately useful suggestions. Must have been the heat

I do agree there's a danger that team building exercises turn into a cringefest, but given the situation at work doing nothing isn't an option. My view is that a successful team building exercise takes place during a normal working day (i.e. not weekend or evening), is at no cost to the employee, and should be actually fun. Of course I have to sell this idea to the boss first...