Unless your DD is actually getting upset about her inability to read, I would back off completely and just concentrate on reading to her, to develop her listening comprehension and to foster a love of literature and knowledge. Based upon your particular description, I believe that her reading achievement will end up in the same place in a few years whether you interfere or not.
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I really agree with this. I would let the topic totally alone for now and not bring it up or ask her to do anything. Just read TO her. If she asks to do the computer stuff, that's fine. If you can't read to her as much as she desires, books on tape!! They are a godsend.
My DD was seemingly ready to read in every way as an early 2, and COULD read many sight words, environmental print, sound CVC words out, etc. She did not actually learn to read till 5, at which point she took off like a rocket. DS was far less early with the "about to read" milestones--no baby sight words at all-- but approached words more phonetically, and suddenly started reading on his own as a young 4 (we did have Bob books around and he watched phonics shows sometimes).
