I think reading together works very well. Have her read the odd number pages and you read the even numbered ones.
To work on comprehension, ask her questions as you read. What do you think will happen next? Why do you think Johnny did that? Try to make a connection between what is happening in the book and her expereiences.
Does she know her 100 sight words? If not, make up some flash cards. Or go with the one word a day theory.
Try to make it fun. Let her choose the books she wants to read. Take her to the library.
Just read to her. Let her appreciate a good book/story.
Let her see how important reading is in everyday situations. Make sure she sees you and hubby reading.
Good luck.