Check out Milt the Talking Musky!
This is a cool story that my daughter loves! On the surface, it teaches good values such as honesty, trust worthiness and others, but at the root of it is an Information Technology called "sight words", which are taught to first and second graders and helps them to to read and spell more fluently by memorizing very common words and patterns.
Visit Milt at www.Miltthetalkingmusky.com. A stimulating multi-media educational tool for 1st and 2nd graders!