Cool! I hope you have great success!
I also skipped the letter lessons since both my kids knew them before we got the book.
How's it been going? I haven't heard anyone else here using it. I like it because I wanted a very thorough systematic phonics program. How does your daughter like it?
My son doesn't love it. He enjoys the part where we read new words together (I read, we read, he reads). And I think that part is really effective. He doesn't love the little stories to read afterward. I really believe its a mental block--he'll read much longer from a book. But, for whatever reason, this feels more like "work" to him. And I guess it is. But whenever we are actively using a reading program with him, his reading explodes...so for now we just eat cookies while we do the lesson.
I'd be interested to hear how you handle this (if it has been an issue).
Anyhow, good luck and let us know how it goes!