Like I've posted before, DD is not a big talker and I think I've heard that there could be problems if your kid starts reading before they start talking?
I can't answer whether there will be problems, but my 19 month old DD is very average with her speech but already recognizes some words. There are a few words she recognizes that she can't say, but can either sign or use other indications when she sees them.
One of my sons (now 8) wasn't exposed to letters or words as early as my DD, but when he was 2 he had learned his letters from a peg puzzle and old style fridge magnets. I thought that since he knew all his letters and sounds I would spell a few words out for him. He was immediately able to pick them up out of context. That kinda freaked me out, and I stopped spelling things out and put his magnets away (he had grown out of the peg puzzle). I didn't take the stuff out for nearly 6 months, but by then he was no longer interested and he ended up not really picking up reading again until he was 3.5 years old. He was always rather stubborn that way. I can't say how other children with different personalities would react, but for the time being, I will continue to spell out the words for my DD when she follows me around with the doodle pad until I do.