Teaching a child to read can be the most difficult thing in the world to do, especially if that child is a special needs child. I have found that teaching any child with or without special needs requires patience above all else. Do not let your panic show because then the child may fear he or she is doing something wrong or should be scared and worried about failure. I have collected some links to websites that offer more information about this particular topic.
One such website is in the format of questions and answers and has more information about this subject. On the left-side navigation bar, you will find links to other webpages within this site that discusses the how-to steps talked about in the FAQs page. I think the tips on this website would go a long way in a parent's efforts to teach their child to read.
Another option to is use a book called Teach Your Child to Read in 100 Easy Lessons, by Siegfried Engelmann, Phyllis Haddox,and Elaine Bruner . There are thousands of parents out there who swear by this book. With all those success stories, how could you go wrong?
WiseGeek also has an informative website that will help you in your quest to teach your child how to read. One such tip is to not only teach a child the sounds involved in words, but to teach the meaning of the words as well so that the word becomes relevant to the child. There are more answers there as well.
The final website that I would recommend belongs to the American Library Association where not only reading help is offered but also math help as well. There is a resource directory with tons of information available on these topics.
Remember, each child will learn to read at his or her own pace. The important thing is to plant the seeds and watch your child blossom when he or she is ready. Children are naturally curious and if you tell them that everything they ever would want to know is in a book, that will provide intrinsic motivattion to learn how to read.