Try the Bob books starting with the blue box 1. it will get her reading. my boys taught themselves to read with the bob books. They learned the letters from leap frog and sight words from learn the sight words DVDs then they just taught themselves to read using bob books. After the blue box we went to the sight words purple box. Then level 2 yellow box then level 3 red box. They cost about $10.00 each. Now they read level 1 books from the library and other series books. They get 1 piece of candy for each book they read so they come to me to read a book. Sometimes they will read 3 or 5 books in a day so they can have a piece of small candy for each.
My daughter is three and a half. I have decided to home school her, because that’s what i think is best for her, and because she is already interested in learning. She picked up the alphabet almost instantly,(Alphabet song, if I remember right.) and she has already learned the sounds of every letter. (Except q and x, she knows what they are just has trouble pronouncing them.) She is improving significantly since I started (three days ago)) on sounding out 3-4 letter words. My question would have to be, where do I guide her next? I don’t want to skip something to fast and her not completely master it, or go over something so repeatedly she gets tired of it. Like you said, learning should be made fun whenever possible, which is the approach I try to use. What is your opinion?
“We 'fish' those foam letters with a small net out of the bath: it's a great game. I put about ten letters in, and say, 'Where is m?' and my son fishes it out. We also play I Spy and this game where I say, 'This word starts with the 'a', and it's a fruit, it's red and crunchy' and he has to guess what it is. I don't really want him to read before he starts school, but I would like him to 'want' to learn to read and have an interest in letters and sounds and numbers.”

Begin giving your child complete stories. Odds are, your child will be in school by the time they are able to read and will be given their own reading material by their teachers. Help them to read these whole stories by encouraging explicit phonics use, and recognizing vocabulary. As their word recognition increases, they’ll be able to more fully understand story plots and meanings.
There are a plethora of ways to incorporate multiple domains of development in regards to letter recognition and early-reading skills.  Alphabet crafts allow your child to learn the shape of a letter along with an association of the sound it makes all the while utilizing fine motor skills in the process of cutting, gluing, and creating!   Playing games that involve gross motor skills (like tossing beanbags on the appropriate letter) are also wonderful ways to include movement.  Of course, every child loves songs and rhymes!  Take an inventory of your child’s strengths and areas of interest and target activities to fit them!