"Teach Your Child To Read in 100 Easy Lessons"
I used this program to teach Madison how to read and now we are using it with Lydia. I've been told that people either Love or Hate this program. We love it!

This program is phonetically based and teaches comprehension right from the beginning. It starts out with a combination of letters so the children start actually reading words early on, this is so motivational for my girls! Lydia read 6 words today all by herself and she felt so proud! Lydia is only on lesson 12, 88 more lessons to go! In lesson 13 she will read her first sentence!
Here is an excerpt from a review on Amazon.com...

Ignore the slow start, this book really works!, October 25, 2002 by Jaames LeMay

This book starts painfully slowly, but my advice is "hold on." At first, I couldn't stand the agonizingly plodding pace. And it wasn't just impatient me. My three year old didn't see the point of saying the list of words as slowly. But we gave it a chance anyway, after all the good Amazon reviews and marketing hype on the book itself. By a quarter of the way through, we began to look forward to reading time. One small addition I made to the scripted course was to invite in stuffed animal guest teachers (see suggestion 1 below). It worked like a charm.

I love the way the parent's part is scripted. The script turns anyone who can read into a patient, supportive master teacher! I love the way all sorts of short activities make up each lesson - very balanced. Best of all is the way this book's lessons touch all the bases. They connect letter sounds with words with stories with writing and finally, with reading comprehension, the point of the whole exercise. I really appreciate the short stories and the picture from the story with discussion questions. Now that I've talked to some teachers, this balanced, comprehensive approach is a perfect way to start a child reading. It doesn't lack any aspect that they will use later, or emphasize one to the exclusion of the others.
I didn't expect the writing, but I am very happy that it's in there. I bought the book for my three year old, but I am putting my 5 year old through it too, because it is so complete and methodical.
When I first saw the phonetic alphabet, I thought it was a little strange. But my child has no trouble recognizing the joined "sh" symbol as an "s" and an "h." And the "sh" is a single sound in his mind, as are "s" and "h." The notation caused us no problem at all, and I only mention it because another reviewer found it problematic. We did not. Likewise, I wasn't disturbed by short e not being mentioned sooner. Who cares? The order presented was gradual, and as logical as any other.(Although it led to a lot of stories about ants.)
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So after a slow and frustrating start, which in retrospect was absolutely necessary, we both look forward to our daily reading time. We brought in the beanie babies to inject the missing element of fun. I know Matthew will have a solid foundation in all the parts of written communication, and Matthew likes the fact that his favorite stuffed animals are teaching him to read.