These programs are free or very inexpensive

Reading Activities 
Starfall high-quality educational products are an inexpensive way to make the classroom more fun and inspire a love of reading and writing. Parents use Starfall to support there children. Starfall is an educational alternative to other entertainment choices for children, Stories and books online brought to you by Screen Actors Guild. Read aloud with images and captions to make it more understandable to the listeners. There are also lots of activities-Check it out! 
Adventures in Reading program aligns with state reading standards. Highly interactive lessons with built-in rewards. User friendly sssessment, progress tracking and reporting for students. Ideal for in-school or tutorial intervention and differentiated instruction. Students use this program independently at home as well.  
Free Presentations in PowerPoint format & Interactive Games & Activities Children's Storybooks online My name is Sara.  I have 2 boys who both showed an interest in the computer, but didn't know how to use the mouse or keyboard.  Since there was nothing on the market to meet their needs, I developed a series of educational computer software programs that they could operate on their own by simply pressing the spacebar.  I am making these programs available at no charge to any parent or teacher who thinks they may be able to use them. includes levels and reading comprehension free program.
Developed and approved by teachers and parents across the United States, Literactive is the acknowledged leader in early learning online. All the materials are available for free from this site but you need to register.

On Top of Spaghetti Game Reading and Learning Activities
Check out guided reader it is fully animated to engage your child with an interactive journey of exploration, learning and reading. Includes ESL (Spanish) version for every Guided Reader. Over one hundred learning activities for individual or whole class use are available for download from this site Picture Assitance for reading, writing, spelling and communication. Use this program with creating lessons, communication boards, communication books and more. This program can be used with all ages.
Read Write Type software, for grades K-3, seamlessly integrates phonics, reading, writing and keyboarding.