I love Homer, too, so that's where we started, even though there aren't as many choices for learning materials--apart from the Pharr book, there is a book by Frank Beetham, which concentrates on the Odyssey (Book V, I think), and Schoder and Horrigan's two-volume Reading Course in Homeric Greek (which is the one my eldest and I have been working through--it's also centered on the Odyssey). Beetham and S&H are still in print (and therefore not free). Some Attic textbooks (e.g. JACT's Reading Greek course) also have a chapter or two about learning to read Homeric Greek after having learned Attic.
I found a few copies, two of them fairly inexpensive, of a book on Homeric Greek that's user-friendly for beginners:
http://www.amazon.com/Akroama-Euripides-Homer-Two-Greek-poets/dp/0884080625It has Euripides' play 'Medea' and books 9 and 10 of the Odyssey (the Kyklopes, Kirke etc.) in large print, with line-by-line vocab on the facing page. I recommend it highly -- I found it very easy to use in high school. You'd need some grammar under your belt first, of course; I used Crosby & Schaeffer.
