Making Sense of Decoding and Spelling: An Adult Reading Course of Study - Designed to teach adult learners to decode and spell words accurately and fluently.
Storyberries - Free bedtime stories and kids books (ages 0 - 12). Read and listen along with audio. Great for parents who want to read to their kids!
Education.com - Phonics games and other activities
Phonics Bloom - Phonics games - some free ("Play now") and some for a small annual fee ("Subscribe")
Reading Bear - The PBS Reading Bear program. A systematic program that teaches beginning vocabulary and concepts while introducing phonics patterns.
Progressive Phonics - Phonics books that can be shown online or printed out. "It is easy enough for non-English speakers, and engaging enough so they do not feel they are reading a primer."
Phonics.com - Soundcards, worksheets, eBooks and printable literacy games.
Free Reading Program - A fully online reading program, which has over 3000 lessons to cover all kinds of phonics and literacy learning for children.
Between the Lions - The website for the PBS series of the same name. The focus is all about words and letter sounds. The DVDs are expensive but the website is free.
Teach Your Monster to Read - A phonics-based game aimed at young children. You start out learning to simply map letters to the sounds they make and progress through letter combinations (or phonemes), sight words, and reading full sentences