Among all the commercially available computer software claiming to offer reading instruction in a fun matter, I really like Read, Write and Type.
In Read, Write and Type, your child must defeat "Vexor the Virus" by learning the name, sound, and keyboard location of letters. This is a great reading game for sequential building of pre-reading skills.
Another product worth exploring is the new Hooked On Phonics Learn to Read Kit. The original product has been completely redesigned and improved upon. It contains decodable books, workbooks, and word building activities that supplement audio tapes and letter cards.
Although it is not intended to be a comprehensive reading curriculum and it does not contain enough practice for children with reading disabilities, Hooked On Phonics should be a useful supplement for home instruction for parents.
The 30 children’s books contained in Hooked On Phonics were written by recognized authors such as David McPhail and field tested on children prior to publication. Trust me. The books alone make this kit worthwhile.