Some of you may have experienced this kind of instruction before — leading foreign language programs, such as the Pimsleur method, use similar instruction techniques. But if you've never witnessed or otherwise experienced this kind of instruction, it is tricky to get the pacing, prompts, and encouragements/corrections right (even though everything is written for you as a script) while simultaneously monitoring and adjusting to your child's responses.
Because of this, I can highly recommend the (seemingly, costly) software-based tutoring implementation of a slightly-updated version of the book method, Funnix. Its level of interactivity resembles a DVD, but this allows you to be a facilitator instead of both tutor/facilitator. Therefore you can focus on your child's responses — and better know when to pause, repeat, take a break, etc. Additionally, you don't have to read ahead and/or prepare in advance for the slight changes in approach that come every 2nd or 3rd lesson.
When you experience the impressive results of seeing your child more logically (than you) apply rules s/he is learning about decoding English, your first question will be why these techniques are not standard practice. Especially, if you, like me, have tried other methods, including more popular best-selling children's reading software.
But as a slashdotter, you might realize most people are not open to weird, compulsively deconstructed, rule-based, fully-scripted (e.g. robotic) "instruction". Where slashdotters see the potential to scale up such a consistent, teacher-independent, assembly-line approach to instruction, there are just as many non-slashdotters who would fight the "McDonalds-ization" of the education system.
Until that changes, we at least have the method available, as either "Teach your Child to Read" in book form, or "Funnix" in software tutor form, to use at home.
except the one that links directly to your article about the best method for teaching kids to read. (Which apparently doesn't seem to exist.)
BTW, The article about the best method for teaching kids to read is Chapter 7 of "Super Crunchers" and its footnotes which link several academic data-driven field studies over the course of 40 years that back this up. e.g. 70'000(?) kids over the 10 year(?) "Project Follow Through" project. This book chapter is not online - I unfortunately can't link to it. I'm also surprised nobody has done a slashdot book review on "Super Crunchers" in general. It is basically practical case studies in data mining.
Make headway at work. Continue to let things deteriorate at home.