As a speech-language pathologist, we commonly work with children with reading and language disorders (such as dyslexia).  It is common to use nonsense words and syllables with these children.  If they are able to understand the phonetic principles in nonsense words, they they can easily read 'real' words.

A side note-My daughter said her first 5 syllable word when she was 2 years old.  She learned it from the Campbell's soup commerical..."Possibilities!".  She would hear it and run around saying it excitedly...it was pretty funny!  Needless to say, she is 3.5 yo now and is reading at the 1st grade level and learning vocab at the 1st grade level too (such as dawdle, adventure, immense, pester). 

I also wanted to mention that we use the Melissa & Doug responsibility chart.  It is a magnetic chart which has behaviors/chores for the week, and then magnetic smileys for the child to add.  This has worked really well with my daughter...we got it when she was about 3yo.  At this age I give her 2-3 'freebies', meaning stuff she can already do (such as brush teeth, get ready for bed, get dressed, etc.)  The remainder of the tasks are things she has to think about and be aware of...such as sharing, saying please and thank you, being respectful, etc.  When using the chart, she just has more awareness of her behavior.  The smileys are great because it is positive reinforcement for good behavior, and going through the chart at bedtime gives time for reflection on things that need worked on.  Then at the end of the week we count up the number of smileys she has and if she has over a certain number (say 40 smileys for the week) then she gets a reward.  Sometimes it is special time (without little sister!) with mommy or daddy playing a board game, going to the park, for a walk, etc.  Or sometimes it is a new book or puzzle...sometimes it is something bigger like going to the movies or the zoo.  It just depends on what we have time for, how well her behavior was for the week, etc.  Of course the older the child, the more smileys you can require...although no one is perfect!

Here is a link to the magnetic chart if anyone is interested (it's at the bottom of the page!) ... http://www.earlytolearn.com/2009/reviews/products/melissa-doug/

I didn't watch the video but there are many kid friendly sayings, like "When two vowels go walking, the first one does the talking."  This is the vowel team rule, when two vowels are together in a word, we only hear the first vowel and it is a long vowel (ex: train, toad)

When teaching phonics, I think the first step is teaching the difference between long and short vowels.  There's some really great music I found that teaches basic phonics such as long vowels, short vowels, rhyming, 'qu' (Q and U are friends), hard and soft c and g, silent e....  I love to use music for learning!

http://www.earlytolearn.com/2009/reviews/music-songs/phonics-music/

I believe both phonics and sight word approaches are important.  I started my girls with phonics.  Phonics is what allows us to sound out unfamiliar words we come across and what helps us with spelling.  Sight words are also important because they are what allow us to be efficient readers.  At a young age, sight words are usually high frequency words (such as Fry's Word list).  I also focus on words that have irregular spelling and can't be sounded out (such as: one, two, you, etc.). 

Eventually, as adults, most words become sight words because we have seen them so frequently.  This is what separates efficient readers from those who are not.  But great adult readers are also able to read unfamiliar words (and determine the word's meaning due to the root/prefix/suffix and context) and the only way I believe this is possible is to have an understanding of how letters and sounds work together...phonics!

LongTallDrink- I will have to look into that book...sounds interesting and I'd like to see how it incorporates into my current beliefs, or might change them a bit. 

Autumn- It is so funny you say that about your kids, because mine are the same way!  My girls are constantly hugging and kissing us (and each other!) and my 3.5 yo tells me how much she appreciates things and "You are the best Mama at (of) all!".  I feel so truly blessed to have such loving and smart little kids.  Like yours, most of the time we have no behavior issues.  If we do, usually I am able to redirect them or guide them to a solution!

I thought I would chime in on the topic!   Interestingly, I thought I would be a parent who spanked...mainly because I was when I was younger.  I don't think I'm scarred from it or anything, as it was only occasional and done to get our attention.  Now as a mom of 2 daughters, I simply don't feel comfortable with spanking.  Every parent is different and you have to do what you feel is best for you and your kids.

Before my first daughter was born I read John Rosemond's "New Parent Power!" which is really a combination of two of his books ("Parent Power!" and "Six-Point Plan for Raising Happy, Healthy Children").  I just really liked his philosophy on parenting, and the book is great because it covers other topics for each stage like pacifiers, biting, tantrums, bedtime, moral development, allowances, curfew...you get the idea.  Basically from infancy through the teen years.  I also liked "Happiest Toddler on the Block" by Harvey Karp and "How To Talk So Kids Will Listen & Listen So Kids Will Talk" by Adele Faber and Elaine Mazlish.

I also use the steps like on Supernanny...a minute for the kid's age.  We only have 4 house rules which have so far worked for us, and if one of these get broken then the steps are the consequence.

1.  Listen and Do. (My all-time favorite because it pretty much applies to anything!)
2.  Keep hands and feet to yourself.
3.  No taking toys, share them.
4.  No screaming inside. (Not usually an issue, but there was a phase we went through!)

You have to be consistent or it won't work and make sure to follow her method (say why on steps, explain again after, kids says sorry, hugs & kisses).  I figure I would rather teach them how to behave now so that is all they have ever known, rather than deal with battles when they are a bit older and out of control.  Don't get me wrong, they still get attitudes sometimes (anyone with a 3yo knows what I mean!) but I am fortunate to have well behaved kids disciplined in a way that I am comfortable with.

Also, I think it is really important that both parents are on the same page with how and when to discipline...kids just need that consistency.  Hope this helps!

You should try Tot School!  Tot School is not really school, but just activities for the toddlers in the family and a way to spend special time with them.  Here is a link to an example of what we do at home http://www.earlytolearn.com/category/homeschooling/tot-school/.  You can also go to the site where Tot School started http://lapbooksbycarisa.homestead.com/TotSchool.html.  Carisa has a TON of excellent ideas and the site is a great resource.  

It's just my opinion, but I think you should relax and not over schedule your baby.

Even some nursery rhymes aren't all that great (like "The Old Woman Who Lived in a Shoe") but I still read them to my daughter.  At this age she doesn't know what some of the stuff means.  If you aren't comfortable with parts of the story, you can make it a little less scary.  (Like "She KISSED them all soundly and put them to bed.")  This comfort level is different for each parent/family. 

As far as explaining things to my children, I always do my best to give them an answer.  I don't think some things like life, death, money, etc. have to wait until they are older.  My opinion is that I want to start the lines of communication now, especially about difficult things, when they are young and they just know to come to me for answers and discussion.  Hopefully this will continue when they are older and more serious topics come up.

For example, we pass a cemetery on our way home each day and my daughter recently asked what it was.  Some people might just say a garden because of all the flowers, and in some ways that would be an easy answer.  But I talked about death and did my best to explain it in a non-scary way, but in a way she could understand.  We each have different beliefs, so I won't put mine up here.  But if you are open to my explanation you can PM me and I can give you more details if that will help.

Just play, play, play with your baby and enjoy her!  You have so much time to formally educate her.  Playing is teaching at this point.

I breastfed both of my daughters and they gained weight very quickly for the first 6 months.  For example, when I took my 2nd daughter to the pediatrician for her first checkup after the hospital 4 days later, she was back at her birth weight!  Usually that is hoped for when your baby is 2 weeks old and why you go for another checkup then.  Needless to say, we didn't have to go for that visit!  My 3 month old babies were the size of 6 month old babies.  But that started to slow and by 12 mos. they were average.  Every baby is different and you have to do what you think is best.  I didn't worry about overfeeding them while breastfeeding.  Your milk is made especially to meet your baby's needs, and adjusts accordingly.  I just looked at it as nature's way of making sure I had a strong and healthy baby.

I also made my own baby food and used the book "Super Baby Food" by Ruth Yarin.  http://www.earlytolearn.com/2009/reviews/books/super-baby-food/ I loved the page where she gives you an idea on what foods are appropriate for each month.  I firmly believe both of my daughters are such good eaters (meaning not picky eaters) because they have had 'real' food from the beginning and have always just eaten what we are having for dinner too. 

I was going to suggest the same thing momtomany! 

Tanikit- The "What Your Kindergartner Needs to Know" (a.k.a.-WYKNTK) would be a good place to start, and where I started with my daughter.  For me, it gives me an idea of what we should be doing and talking about.  I go into more depth on some things if my daughter is interested and can handle the knowledge.  The great thing about these type of books is that you can tailor it to fit your daughter's needs.  It gives you an idea of what she should be doing in Kindergarten...where to start so to speak. (CK also has a preschool curriculum, so you may want to look at both levels and see which best fits your daughter's current level.)  These books are guidelines, so you can easily make things a bit simpler for your daughter if you need to, or more complex. 

You can take plenty of time to let your daughter scribble, color, and build up to handwriting.  Like momtomany said, you can allow her to answer many things verbally until she is able to start writing for herself.  At this age I don't sit down and  "homeschool" my daughter every day for however many hours.  My daughter is only 3.5 years old, so anything we do at this point is just bonus.  I started because my daughter has the interest and curiosity to learn, and I didn't want to let that to go to waste!

The local library may have some of the "WY_GNTK" books by Core Knowledge.  I ended up purchasing the Kindergarten book at the bookstore ($15 I believe) since I refer to it frequently.  I also wanted to test out the CK curriculum and see if it was something I wanted to continue to use down the road.  If not, $15 wasn't a big investment!  By the way, I love the CK curriculum.

Questers,
I have played music with both of my daughters since they were born.  As infants I danced with them in my arms, and usually by the time they could pull themselves up they would 'dance'.  I also started painting when they were around 6-8 months old...finger paints first and then moved on to large brushes that are made easier for kids to hold.  Every summer, even as newborns, I brought my kiddos in the pool.  I don't believe really anything is 'too young' for children to experience as long as they are supervised properly for the activity.  We do a lot of art and music related activities here at home during the week.

If you are speaking more of classes like a swimming class, painting class, or dance class that really probably depends on your finances and what you think is important for your child to experience.  I did a mommy-and-me type gymnastics class with my oldest daughter when she was 18 mos. old for a couple months.  She is taking swimming lessons this summer (3.5 yo).  My philosophy as far as activities go is that I will introduce a different activity to her each summer, fall, or spring.  I am only choosing one activity at a time for now because I don't want her to be stressed and over scheduled at 3.5 years old.  I will vary it between sports, art, and music related so she is able to try out different things.  She has expressed an interest in softball so I will be looking for a little league in our area soon.  Maybe after that I will look into music lessons.  I figure eventually she will find something she really enjoys and want to stick with it!

Bertha,
Hello! I don't have a baby who is deaf either, so I can't give you firsthand experience.  I am a speech-language pathologist and also know sign language (ASL).  Do you know sign language?  I believe signing while your baby sees the word or picture would be beneficial.  Also since your baby can't hear the word being spoken, it might be good to say the word yourself (while signing).  This way your baby will see your lips moving, which adds more visual clues for your baby to go by.  Another idea would be to have your baby touch your throat and mouth to feel how you say words. 

English sounds are grouped in pairs by the placement of your articulators in the mouth.  Articulators are just your lips, teeth, tongue, the ridge behind your teeth called the alveolar ridge, and palate.  So these two sounds are made different by being voiced or voiceless.  For example, feel how you make a 'p' sound and a 'b' sound with your lips.  They are done the exact same way!  Now feel your throat (larynx) when you make the two sounds and you will feel your voice on (voiced) for the 'b' or off (voiceless) for the 'p'.  (Just make sure you aren't adding a vowel to the end of the sound like 'buh' or 'puh' when you say the letters....'p' should just be a puff of air.) 

So by having your baby feel your mouth and tongue move and whether sounds are voiced or voiceless by touching your throat will add more tactile information for your baby to go by.  I'm not sure how this would be worked into the reading program here, but these are just some extra ideas for you to try and maybe see what works!

I'm pretty sure that images and photographs are protected by copyright, too.  If for personal use, then probably not a big deal.  But if it is something you are going to distribute (even if for free), it would be good to ask permission for use of the images and photographs.  Many people may give you permission with no fee, but some might want you to pay a fee.  A good place to purchase images for use with copyright permission would be iStock Photo or other similar businesses. Then you can be sure you won't get in trouble!

http://www.istockphoto.com/index.php