At our school, a lot of learning is "snuck in" during dinner time, riding in the car time, bath time, pretty much any time. Lately, my sneaky lessons for Thing2 have been the blending and segmenting games found in Reading Reflex.
From the beginning he could blend sounds to make a word (I say, "c-a-t." He says, "cat!") almost every time. But segmenting (I say "cat." He says "c-a-t.") was beyond his comprehension. For example, I would ask, "What is the first sound you hear in mmmmouse?" He would answer, "p!" I would reply, "Not pouse! (insert silly laughter) m-m-mouse! mmmmm." And we would try again. And again. And again. We would even reverse the game and try to think up as many 'c' words as we could. His 'c' words would often include moose, shirt, etc.
Well, I am happy to report that today, after a few weeks of the exercise described above, he actually identified some first sounds correctly! I believe he is capable of learning to read!