I like Susan Wise Bauer's approach in The Well Trained Mind. Here are some of the author's notes under The Good Reader: Teaching Reading From Birth On
http://www.welltrainedmind.com/

I also like the book on CD approach. I give DD's the book to follow along with the CD and see rapid growth in fluency and speed.

Jim Trelease describes an interesting approach in the Read Aloud Handbook. Basically it's using the closed caption feature on the TV. I prefer almost zero TV for DD's so I haven't tried this, but it's intriguing.

http://www.trelease-on-reading.com/rah-ch9-pg4.html