I know you said nothing web-based, but my DD taught herself to read using Starfall. She was OBSESSED with using it every day from the time she was 2.5 on. She used to wake us up at 5:30 am asking, "Can I play the letter game?" By early 3, she was reading simple sentences; by mid-3, she was reading picture books to her preschool class during story time. Best part is that it's free!