Dd5 is progressing very well in reading. She often reads picture books to herself and her sister now, provided that I have read the books to her recently. Because she remembers the stories and many of the words used in them, she's able to work out nearly all of the words by applying the phonics rules we've covered so far. Not bad, considering we are just finishing up the "silent 'e' at the end of the word makes the vowel say its name" rule. Thanks to www.starfall.com, she has been given a solid foundation in knowing letter names and sounds; Starfall is one of the best websites ever.
Lessons are not stressful for either one of us. I especially love it that our formal reading lessons are nearly always under 10 minutes per day. A typical reading lesson can be as simple as sounding out twelve words or so that require application of a specific reading rule. If she's being fidgety, our lessons really are that short. Also, if need be, we spend weeks on the same rule until she understands it. It's not like we have to rush her to reading proficiency...she's barely old enough for kindergarten as it is! It's pleasant to be seeing fruits already from our low-key but consistent approach to teaching her to read.