He has said he wants a game on the computer to help him. The ones we've tried (starfall.com and headsprout) are too focused on learning the alphabet and the sounds the letters make, at least in the beginning and he ends up using them as passive video games instead of learning tools. Does Reader Rabbit work differently?

One thing I've been doing when we read together is having him sound out a couple of major words in the beginning of the story that repeat a lot and then stopping and letting him fill in those words whenever we come to them. It seems to help him focus on the text as I read and learn to visually track the words as they're read. And now that I type that, I'm wondering if the problem is the transition from being a passive listener to an active reader?

I think he also sees DS6 reading very fluently and thinks that's what he's supposed to be able to do.