Yep at two he is an open book
not nearly too old! My son is 4 doing well with LR. I wish I had started it at age two, because then he would be able to read at least some of the books he demands everyday to himself by now!
If he knows his alphabet and phonics already, confidently, then you may find you need to supplement LR with something else too. Meet the sight words DVD is a perfect choice. On top of that I would consider actively teaching him how to sound out and blend words. Use letter magnets ( lowercase) and make smal CVC words ( that's consonant vowel consonant) like cat split it up sounding out c a t then put it together again c-at, cat. Do a bunch of rhyming ones all ending in at, then it, then an.... You get the idea. Keep lessons short and fun and no pressure for him to do anymore than be there. You get to do all the work. You are modeling how to read for him.
You will not be disappointed with LR, it does contain the phonics I discussed after lesson 30, you son is ready for them now is all. LR will teach him many many things only one of which will be words to read. He will learn general knowledge, vocabulary, pronunciation...... Worth every cent. buy with confidence.
As to the lessons most seem to play one in the morning and the part two in the afternoon. I have been playing it just once and skipping the second lesson as my son was showing me he only needed to see it once by not even looking at it the second time
Let your child guide you as to how to use the program and when.