Free Homeschool Phonics/Reading Books

Reading Made Easy With Blend Phonics
Word Mastery: a course in phonics for the first three grades
Stairway to Reading
Through the Phonics Barrier 
First Lessons in Reading
American Spelling Book by Noah Webster - Teaches reading and spelling at the same time!

Rebecca Pollard Materials

A Complete Manual: Pollard's Synthetic Method of Reading and Spelling
First Book for Little Folks   (a combined version of all the 1st year work)
Synthetic Primer
Synthetic First Reader
Synthetic Second Reader
Synthetic Third Reader 
Advanced Reader

Synthetic Speller
Synthetic Advanced Speller

Elizabeth Burnz Materials

The Step-by-Step Primer
Pure Phonics for Home and Kindergarten
The Spelling Reformer
Student Progress Chart by Don Potter