Have you seen this site?:http://www.starfall.com Also, you have a dog or cat? If so, when he starts sounding things out he might want to read to the pet. These are things that have helped my daughter. She is an auditory learner, so it has been more difficult for her to learn reading than for my oldest son. Yet, she can remember things in amazing detail.
Jacob is a very tactile learner. I'm learning how to teach "to" him, thanks to the book, "The Way They Learn". I love it.
I hadn't heard of that site. I'll check it out, though. Thanks!