Thanks everyone, some tips were quite helpful.
I think we just need to do 1 sentence as Manda recommended. Maybe, I am expecting too much. The Starfall books are pretty interesting for her, she loves looking at the images so I really thought that she should be able to finish them. It is difficult for me to close after one sentence because I just want to finish the whole thing.
I have tried books with family pictures with little hope. But I should try using powerpoint books with one page sentence and other page picture. The reason I concentrate on Starfall because it has the lessons in series so it is easier for me to gauge that she's learned the rules, like when two vowels are walking, the first one does the talking. My daughter even loves their rules, we can say anytime during the day.
As for Reading Wishperer, definately, a good point that reward might not be a good idea, as she will not be intrinsically motivated to read then. I will definately keep that in mind. But sorry, I think the rest of your message gets lost because you assume rather than ask.
You didn't ask whether my daughter can sound out the words. She can sound them out and try to blend, with help. I definately help her with blending and understand that she will need this help for a while.
Maquenzie, heee... that was funny...I swear that is how reading is too, she brings up weird things in between. But I've tried actually many things...positive feedback, I think I just hit a deadlock but she doesn't let me close reading...I guess she thinks Mom, won't come back to it later. I'll go with reading only one sentence at a time and wait for her clue to have more.
Thanks everyone for the great tips. My apologies if I forgot to include a few in these comments.