I just wanted to make a recommendation for everyone with very young ones learning to read. I Find it hard to find resources sometimes because some learning to read material is at an older childs level. Anyhow I found that the DVD's of the TV Show Inbetween the Lions very wonderful. My 3 year old loves it and some of the reading rules I couldn't figure out how to explain to him (like the silent e making the vowels say their names), were explained in such a fun way that he could really enjoy and not only understand, but remember. He soaks the Ideas up so fast. I really recommend these shows! Our local library system has many of these DVD's that can be reserved, so possibly some of your libraries may also.
