Hi 2010BEBES,
I purchased the physical product of Little Reader Chinese and I received a box set that included the curriculum content and a daily lesson planner.
I did a little research (on the brillkid forum) and I found out that the difference of simplified and traditional characters is basically that simplified is a cleaner version of the traditional character and is more commonly used where people speak Mandarin.
http://www.gts-translation.com/Chinesefaq.aspSimplified Chinese and Traditional Chinese are different variations of the written Chinese language. They have the same basic grammatical structure but for various cultural and historical reasons, Simplified Chinese and Traditional Chinese use different writing systems and are not interchangeable. Therefore, you may need to prepare translations in both Simplified and Traditional.
Simplified Chinese is used and is the official writing system in mainland China (PRC) and in Singapore. Traditional Chinese is used and is the official writing system in Taiwan, Hong Kong and Macau.
Traditional Chinese uses about 13,000 characters; some of the characters are highly complex. The complexity of this written system was one of the causes of widespread illiteracy in China for many years. The Simplified Chinese writing system, which has about 8,000 characters, was introduced as an official writing language in 1949 in order to combat illiteracy
I looked at the picture you posted of Rosetta's Option One and that is pinyin.
Pinyin is a translation of mandarin characters into alphabet letters
Here is the Wikipedia (Thanks DadDude!) definition
http://en.wikipedia.org/wiki/PinyinPinyin (Chinese: 拼音; pinyin: pīnyīn; Mandarin pronunciation: [pʰɪ́n jɪ́n]) is the official system to transcribe Chinese characters to teach Mandarin Chinese in China, Hong Kong, Malaysia, Singapore and Taiwan.[1] It is also often used to spell Chinese names in foreign publications and used as an input method to enter Chinese characters (汉字, hànzì) into computers.
Pinyin has become a tool for many foreigners to learn the Mandarin pronunciation, and is used to explain the grammar and spoken Mandarin together with hanzi. Books containing both Chinese characters and pinyin are often used by foreign learners of Chinese; pinyin's role in teaching pronunciation to foreigners and children is similar in some respects to furigana-based books (with hiragana letters written above or next to kanji) in Japanese or fully vocalised texts in Arabic ("vocalised Arabic").