Linkat -- I'd advise you to read even more to your daughter than you already are. Use large print books and follow the text with your finger. Occasionally point out a letter... like, oh, there's a capital J, just like in your name. Don't make it a chore... make it seem like a fun puzzle.
Use books that have large type. It has been found that children need those in order to differentiate between letters. Later on, they'll master smaller and smaller fonts.
If you can find them, try out the 1a, 1b, and 1c books from the fabulous British series of books called the Key Words Reading Scheme
by W. Murray. If you go to abebooks.com and use that as a reference you'll find pages and pages of used books from this series (mostly in the UK, but a few in N.America). Amazon has these, as well -- see below for what they look like. Each is hardbound, about 4x6 inches and nicely illustrated. There are 36 books in the series, each building on the next with interesting vocabulary. I think, all told, we had about 8 books. My kids loved them and then they were passed on to their five cousins.