I will say one thing - we had some BOB books and both of my kids hate(d) them with a passion, to our surprise (although at school, DS6 seemed okay with them), so based on some recommendations here, we got a bunch of Brand New Readers which are very popular. DD4 has not shown any interest right now in decoding words, but she loves these books right now - she seems to be trying to figure it out (but won't let me "help" her so I leave her alone).

Since DS seemed to frustrate easily - he wanted to read but was cautious, DH tried to make silly word games (like using freezer magnets and then spell out "mess" and DS would come to me and say "Mommy, there is a mess in the kitchen!" - p00p was popular for this one) and flashlight in dark with sight words on the walls which seemed to help - although he was reading already apparently before we realized he was reading.