My son also needs phonics/leveled readers and it can be a struggle. I second the recommendation for Pathways Readers. Also, some of the Dr. Zeus Beginner books (some are better than others). I bought some of the Sonlight early readers (I Can Read It - not religious) and they look pretty good. We're also going though the Little Bear series. They are part of the the I Can Read series. I have found some books in the series to be more challenging than others. I just order them from the library and see if they work for us now or will keep for later. Child 1st Publications also has some great readers as well as other stuff.

Do you have Snap Circuits? My son sounds a lot like yours and he loves them. You can get lots of add on kits too. We also have a lot of 4M science kits which are really fun (do need some parent help though). Not science, but my son loves to make those long domino "tracks" that cause a chain reaction. Also watching them on you tube. And making his own stop motion movies using playdoh and my camera... Keeps him busy for hours. HTH, Lara in Toronto

We love Reading Made Easy, Click 'n Read, and Pathways readers. Lara