I had a huge problem with my son when he started 1st grade this year also. I give him a quarter everyday that he doesn't get his name on the board for talking. (A little positive reinforcement) If he does talk, he gets a favorite toy taken away for the night.
The last week of school he had an awful week and I took his playstation away for 3 days in a row and he had a FIT and I hated having to deal with him about it. But you know what? This week, he has been AWESOME!! LOL His teacher said he has been so well behaved this week.