A couple thoughts...
I definately second the Geronimo Stilton recomendation. Great book with alot of extra white and fun colors and fonts on the page so it doesn't look like alot of reading
Second, depending on your feelings on screen time, many games involve alot of reading. Even if it isn't "Educational" software it can build interest and ability in reading. An ebook reader might work too since you can adjust the font and words per page on many of them.
We have also found that picking out a long book like the complete Chronicles of Narnia allows us to read a chapter a night but all of us take turns reading. DS started reading a few sentences and then passed the book off to one of us. Now it is hard to get him to trade off at the end of a page. We started with larger font books and worked down to about normal.
Good Luck
