Petunia- CVC words are consonant-vowel-consonant words. (i.e. dog, pan, cat, etc...)
Mountainmom- Yeah, if she's able to sound words out on here own I would say that's reading. Basic reading, but reading nonetheless. I know that when DS6 started reading (around 2y11m) that he went from reading C-V-C words to sounding out words like 'opposite' in just a matter of a month or two. Now he's 6y10m and a smart aleck so I don't know EXACTLY where his reading is now but I know it's at least a 3rd grade level and is probably a lot higher than that.