I like Starfall and Reading Eggs for fun educational learning. Reading Eggs is only $16 for a year right now at the homeschool buyers co-op. It's free to sign up.
Here's free spelling rules. http://www.splashesfromtheriver.com/spelling/spelling_rules.htm
As for progression, I like to just do a bit each day. If he seems to get something move on to the next, but continue to review the previous. Same if he seems bored. Just don't keep going if it isn't getting it. You could go to the next lesson then back, but don't just keep going if he clearly isn't getting it.
All kids are different. Some will need one lesson, some a week, some a month. Make it fun. Keep reading to him. Have him read real books to you asap. It makes them feel so accomplished. There's lots of very beginning readers out there (BOB books, Primary Phonics, etc, check the library). If there's a word he doesn't know just tell him and move on.