Starfall - good general site of alphabet, rhyming words, sight words etc.
Dolch sight words (www.familylearning.org.uk) - a collection of links to different sight word games
Dolch sight words (www.dolchword.net) - a collection of games for the different levels.
Writing Wizard - the children can make their own worksheets to trace the words.
Sesame Street - a wide variety of games for the younger children
ICT games - a wide variety of literacy and numeracy games
Digger and the Gang - literacy games
Games to develop IT skills
Little Animals Activity Centre - a great site from BBC
Teach Your Monster to Read