but I so sorry you are having these problems.
IMO, an 8 y.o. should be able to recognize letters.
Does he read at all? If he does, does it seem like he has memorized whole words? Some kids do learn like this. If he has memorized whole words, I would have him read, read, read, while you are working on letter/sound recognition. He'll get some confidence and so will you.
I am always beating the drum for visual-spatial learners so here is a link.
Meanwhile, I'd turn to your mom. She sounds like she would be a wonderful resource and advocate for you, as well a comfort.
best wishes,
unsinkable
http://www.visualspatial.org/Articles/articles.htm
Look at the reading readiness articles