D.M.
Hi, I homeschool my 3 boys, ages 11, 5, and 2, and I was at my wit's end trying to teach my 5 year old to read (this is my first year hsing). Then I found Headsprout.com. It's a great program, and he is well on his way to being an independent reader. Headsprout uses phonics, and my son loves it because it's like playing a video game. It's $99 for the first 40 episodes, which includes 6 books, a progress map for your child to put stickers on, and an award certificate to present to your child at the end of episode 40. You also have access to other books and flash cards to print out. There are 80 episodes total, and the second 40 are also $99. My son is on episode 72, and he still likes it. The lessons are completely on the internet, except for what I've mentioned they send to you, and you can redo lessons at least once. I hope this helps!
D.