Our library had BOB books with audio CDs and DD listened to them in her room, as well as other audio books. I listened to her read the first couple set of BOB books, and then she was reading easy readers like Go, Dog, Go; or Are you My Mother? Other than that I did not really do much to teach her, I think it was mainly the audio books that helped.
With DS it was basically the same thing but I don't think he's ever listened to an audio book. He has always been better with decoding and learned very rapidly in preschool when I had him read easy readers to me once or twice per week.
With both kids the BOB books seemed to make things click in terms of word blending, but I only used a couple sets then moved onto to "normal" books.
