A friend introduced us to starfall.com when my son was 2ish. By 2.5 he knew all of his letters, and by 3 he was reading fluently at a first/second grade level (by 4 is was chapterbooks like the magic treehouse & the black stallion). Now... a reading toddler is actually a bit of a pain (well, more than a bit, and I'm a bibliophile)... because reading doesn't just mean BOOKS it means EVERYTHING. Every sign and billboard you pass, all the things printed on magazines, every instruction land warning label (and warning labels read like instructions to toddlers with no impulse control).
That very serious warning out there... the magic about starfall (why it works so well) is that the voices on the letters are *just* as excited about T! Tuh! Tiger! Whoa! Look at his teeth! Whoa! the 80th time that day as they are the 1st. Pan, Ran, Can, Man (the child moves the first letter up to match the picture in the 2nd stage) is *always* thrilled with the child, the song "This is how the short a sounds....ah ah ah ah ah ah the ah cat the ah in rat ah ah ah ah ah the a in can the ah in ran ah ah ah ah ah " never stops to rub their temples. The voices never say "Honey, lets do the B's, shall we?" or "How about we ....". There's never ANY hint that the voices are bored. So the kids do them over, and over, and over, and over. And they giggle and laugh and do what THEY want to do a gazillion times in a row. Which is exactly how children learn.
"We" did starfall for about an hour a day (meaning kiddo sat and clicked t 50 times in a row laughing while I read a book/ did the dishes/ etc). It was the only hour of peace I got all day (adhd household). Anyhow... if flashcards are driving you nuts, and you're willing to deal with a reading toddler.. check out starfall.