@ jolly panics !
Ds1 is now 16 - I do remember when he was about two, someone bought him one of those v-tech alphabet electronic thingies - it had different setting for the phonic sounds, and for the 'name' of the letter etc.
I do remember that at two, he gave it a good solid two year old hammering for the noises 
I also recall that if you put it on the phonic setting, and pressed 'F' and 'C' in quick succession, you got a passable imitaion of 'FUCK' - amused me and ex-dh endlessly 
at about 2 and a half, he started to show an interest in letters, and we played alphabet bingo, and alphabet snap, then later he caught onto blending letters into words yadda yadda - same for ds2 really... it was like watching something catch fire - the transition from letters, sounds,blending, reading happened really quickly.
we didn't do jolly phonics etc, we just played games with them, but they were reading by nursery so nursery did biff chip and kipper, with the dodgy bloke hiding in the bushes..
It was a bit like potty training - you read all the bumpf, and it sounds like splitting the atom - looking back, it was a case of keep reading to em, keep em interested in stories, and engage with them, and let them lead you - it's not a contest.
Mine were early readers, but by yr 2, the ones that took more time had all caught up.
Oh - and on a long car journey recently, I found that I could still recite 'Peace at last' verbatim
boys are now 16 & 10 and were ptsl!