I love All About Reading and its companion, All About Spelling. from All About Learning Press.
We started with AAS 1 last year, and AAR 2 (since my kids already had some phonics under their belt) earlier this school year. The results have been nothing short of amazing. J has gone from a reluctant reader of one-line-per-page books to a kid who enjoys reading not only the stories that go with the AAR lessons, but all sorts of other books as well.