We used 100 Easy Lessons, both DS and I really like it, but they do kind of leave you hanging when you are done. There is a list of recommended books at the back of the book, but I remember not being to impressed with the first few, so I didn't continue down the list.
We didn't follow up with another phonics reading program.
We just switched to All About Spelling and to books. If you aren't familiar with All About Spelling, it is a phonics based spelling program.
For reading books I picked up the 'I Can Read Picture Book series' and the 'I Can Read Book Series'. Just search those two terms at BN.com. There are some crap books mixed in but most are really good, Frog and Toad, Mouse Soup, Amelia Bedelia, Fire Cat for levels 1 and 2. Level 3 books are really good with historically based books.