Got Matt a First Words book from National Bookstore. It has magnetic letters that you put on top of words like "cat", "bike", "boy", "girl", etc.
Then I got out Matt's magnetic letters, arranged them on a white board, and let him spell out the same words on another white board.
So far, methinks his video for "beginning to read" from Astrovision is working more effectively. Matt really is a visual learner. But he also needs to take things a step at a time. The sheer number of words in his "First Words" book is still a little overwhelming. And he guesses instead of actually "reading" (or sounding out) the words.