I am using the Reading Lesson right now with two of my kids, with the cd. Love the cd! It just seems to add a little to the program. What I do is, when my kids are done with their lesson, they go and play on the computer... a little reward, and they love it!
We were using the ETC books with it, but I stopped. It just was too much for us, and not really necessary at all. In the ETC books, there is extra handwriting if you were needing it, which could be good. But, my kids seem to be doing just fine with out it. I at first was skeptical, that one book could be so perfect for a phonics program, but not anymore. Carrie has arranged it perfectly!

I think when they finish the Reading Lesson, they are supposedly reading at a second grade level, which is why Carrie has them go on to Emerging Readers and then into Rod and Staff for LA... Correct me if I am wrong.
Hope that helps!
LeAnna
Love my husband of 18 years this year;
Love my 3 teenagers--13, 15, and 16. They keep me young, but hanging on for dear life!
Used HOD in the earliest years with all three of them!