Hi, you don't need to buy an expensive program like Little Reader. A lot of the stuff on this site is based on Glenn Doman's work. Got to Amazon buy "How To Teach Your Baby To Read (The Gentle Revolution)" by Doman. Make sure you get the most recent edition which I think is 2005. Check out a website called childandme.com. it gives a good summary of his program.

You start with large print - 4" letters. You show the words in sets (1 to 10 cards) 3 times a day. Sets (categories) can be family, parts of the body, home, animals, food, etc. Show the words 15 times total, then you retired them after 5 days (5X3=15). when you get rid of a word, you add a new one. You only show the word for a second. Don't ask the child to repeat the word or test her. Just give a lot of praise and make it fun. Then when your child knows about 200 words, move on to couplets (two words), then three-word phrases, then sentences, and then a book that you make from the words your child already knows.

I started this with my 26 month old daughter. She learns the words after only seeing them once or twice. It's amazing. She likes learning too. 

Starfall.com is also free. My daughter learned all her letters and the sounds from there. She also likes the stories.

good luck!