I found the phonics game to be a big help to both boys in reading. It can be had for cheap on ebay.com, too. Once they figured out the special rules, they just surged ahead. we only played one or two levels a handful of times each before they took off. They understood basic phonics prior to our beginning the game, though.
I also found that writing stories that they dictated helped them take huge leaps in reading and knowledge. Watching me write what they said gave them a sense of how written words and spoken thoughts have a relationship.
