I actually used a book "How to Teach Your Child to Read in 100 Easy Lessons" with Pud starting when he was about 3 1/2. He was desperate to read - in tears at rest time because he couldnt read the words in his book. He was reading about halfway through the book but I made him finish the book for the foundation.
He has done Saxon Phonics in 1st grade this year and it did confuse him, in addition to being terribly boring. Things like not being able to read "cape" vs "cap". When I asked to exempt him from the work, I was told that he needs to master phonics to help him with his spelling. I totally do NOT understand how phonics helps anybody who is already reading. The Saxon Phonics people even say it is for remedial or non-reading use. His school also uses it in 2nd grade. I just never saw a value in worksheet after worksheet of making little marks over letters.
By the way, what has helped him with spelling more was what a friend told me (she's a teacher and a dyslexia therapist): every syllable has to have a vowel, that's why "y" is sometimes considered a vowel. That makes great sense to me. After I told him that, he no longer spelled "turtle" as "trtl". He doesn't always get the right vowel but he does get the vowels in there.
As for kids who read on their own, I have no idea how that happens, even though I did it when I was 3. Common wisdom in my family is that I was just copying what my K sister did. I don't remember not knowing how to read.
