We love this too! I have 3 of my dc doing this (ages 6, 5, 4). We've been using this program since September and I've seen a dramatic improvement in my dc's spelling, reading ability and reading comprehension.
My kids usually come stumbling down the stairs at 7 am and before breakfast I'll have 1 on the laptop and another on the desktop computer doing their phonics. (ok, so it's usually just to get school done so they can play rather than b/c they love the ETC. But, whatever, I'll take it!)
There is also a teacher's login where you can see how your child is doing, what they are struggling with and what they are flying through.
We've never used the books but I've heard that the program closely mirrors the books.