YouTube. Anything I want to teach my kids I search for it on you tube. Originally I planned to look up how to teach it, then I realized there was already someone explaining it right there, cut out the middle man, and told my kid to watch the video, bookmarked it, told them to watch it again a while later until it all sunk in.

I really liked the Rock n Learn Phonics brand DvD.
I don't know what software you want. My son started learned his computer skills from Hooked on Phonics pre-k letter names and sounds cd-rom. He used a touchpad on a laptop, but I've read that those mini-mouses work well for little hands.
My kids watch tons of "brain candy" stuff that kids like. You can also find pop kid stuff in other languages. That sort of counts as educational because it's like the Rosetta Stone, right? La Casa De Mickey Mouse has full length episodes on YouTube. Again with the youtube.
Sesame Street, Super Why, and Word World have taught my daughter her numbers, letters, and the concept of blending, also to point out beggining letters. When my son was little we didn't have cable yet. She also knows her numbers because I learned "the big numbers song" from youtube for her brother and it's just so catchy. The two year old just turned two, the age I planned to start teaching her the three Rs. She's a few steps ahead of me due to the tv. The hubby just tried to start teaching her to count in Spanish. He said 1,2,3,4, trying to get her to copy him. She continued cinco, siete', ocho. (she missed one) She's been watching that Plaza Sesamo on the Spanish channel on cable tv.
I watch out for children's literature on tv, The Fantastic Mr. Fox; I googled a comprehension questions for Charlotte's Web after my son watched it recently. He wouldn't have chosen that cartoon because kids get much flashier shows these days. Well, you have to be exposed to those types of stories to get a taste for them, I guess. I read some books of childrens lit, My Father's Dragon, Peter and Wendy, A Little Princess and discuss the vocabulary and themes, but I don't think the substance of the story is limited to print version.

PS. Memorize this song and sing it a lot. Your kid will start singing it along with you. I think it helps them learn to talk and listen more clearly. Also when they're learning to read later and ask what's this sound make you can remind them "f-f-fan".



Youth lives by personality, age lives by calculation. -- Aristotle on a calendar