You might try the book "Teach Your Child to Read in 100 Easy Lessons" by Engelmann. I can't remember the theory behind it but we used it for my then 3 1/2 year old because he wanted to read but couldn't quite get there by himself. He'd be in tears because he wanted to read so badly. He got it within about the first 1/4 of the book and wanted to do 4-5 lessons a day. Very easy to use - about 15 minutes once a day. Seems like there was a writing part as well but we didn't do it. Yours might be too young, I'm not sure. I do like that it includes all the letters in a word (unlike the phonics programs I've seen) but has the ones you actually hear in a different size print. Might be worth a look.
