Fun Websites for Basic Reading Skills
Starfall - Work on letter names and sounds, simple reading games, read short books online. Provides activities for a range of levels. http://www.starfall.com/
Building a Language for Literacy - Three different games that develop important pre-reading skills.
Storyline Online - Listen to quality childrens' books read by actors. View the illustrations. Extension and comprehension activities are provided for each book. http://www.storylineonline.net/
PBSKids and Scholastic also have many different reading and language games on their websites. Many of these are associated with characters from TV shows. Both websites also provide resources for parents as well.