The Hooked on Phonics program has really been working out well.
My younger daughter has been having great successes with it. For some kids, the pace may be too slow - for her, it's exactly what she needs.
I've told her thta after she's spent 30 hours on it, I'll take her to lunch and give her a $20 gift card at a bookstore. She is SO EXCITED! She's been putting in several hours a day. Rewarding her for time spent, rather than number of pages done, gives her the freedom to really spend time on it. It keeps her from getting frustrated if she feels she is moving slowly.