This year I bought some books that I remember reading when I was little, and I am amazed that ds (aged 6) has loved reading them with me (he reads a bit, then I read a bit).
These were "My Naughty Little Sister" and "Milly-Molly-Mandy". There are several books in each series, and you can get copies for about £1.50 - £2.00 on ebay (Or order from your library).
The stories are very old-fashioned, about young children in a by-gone age, but they are truly enchanting, and should help to encourage your dd to want to read on.
I agree that reading should be fun. Read out with her at every oppotunity. get her to read the destinations on the bus, road signs, shop names, labels on bottles, the back of the cereal packet, anything. If she mis-reads something, correct her nicely "That's nearly right, look it says xxxxx because there is an L in the middle" type thing.
DS started most of his reading from the cbeebies website, when we read bits off the screen together. In fact, he could read the phrase "Loading, please wait" before he was 4!!
He is now a VERY KEEN and able reader.