I'm excited to see what people have to say about this. I am having somewhat of the same problem with my younger dd. With her, it is like one step forward and 3 steps back. Granted, she won't be 4 until June, so I know it is still early for her. She can recognize beginning sounds (YEA!), but is struggling to blend. We are finishing up MFW K, and have loved it. My olders dd (5, will be 6 this month), did not get much from the reading part of it. She learned to read mostly on her own, and it turned into more of a review. Mostly, she didn't like the reading part. When I found WTM and OPGTTR, we started on that, and she is doing much better with reading. Younger dd has learned her letter sounds and to recognize beginning and ending sounds with MFW K. Learning the letter sounds with MFW K is a bit more fun than OPGTTR. I plan to go back through some of the activities and games again with my younger.
Sorry for going on and on!
Oh, and don't worry about feeling lost about homeschooling. This was our first year, and now that it is under my belt, I feel much more comfortable. I think that MFW K is a wonderful place to get your feet wet. You have enough structure that you don't have to add anything to it, but not so much, that you can't if you want to.