Free, printable early readers...
link
This very simple website offers free readers to download and printout. They start out very simple, and as the child works through the stories, more and more words are added (that's how readers usually work, right?)
The stories are silly and short, and reading difficulty builds very gradually. Books also include "story questions".
Another source for these public domain readers (this one features printer-ready booklet files): http://www.marriottmd.com/sam/index.html