I had to throw in my 2 cents. We are completely new to homeschooling and I usually lurk, but this is something I have an opinion on!
I can't comment on AAS, but we have been using AAR for several weeks now. I was hesitant because of the cost but we purchased it at conventin which helped. I wasn't going to buy Ziggy, but my husband encouraged me to.
We love the program. Every day my boys (3 & 4) ask if Ziggy is going to come today! I really didn't understand the whole puppet thing, but they just eat it up! I am so glad we bought it.
My oldest already knew most of his letters and most of the sounds, but it really is more than that. We are only about half-way through and the letters are all solid for him already. We just got back from vacation and in the car they kept asking if different words rhyme. They love the acitivity sheets and I love them too. I am not very creative and love that I can just open the book and everything is there.
I really think this program provides a firm foundation for them (and it is enjoyable for all of us--which means a lot!)
By the way, we have most of the Leap Frog DVD's and they have watched them numerous times. We do some starfall. But I really think the hands-on, one to one interaction has been more beneficial than anything. It wasn't until we started this program that my oldest started pointing out letters and their sounds when he saw them on signs and in books, etc.
Anyway, my 2 cents!