Another program we used for my Dyslexic son was called Earobics. This is a software program that runs on mac and pc. We had to try many programs to help him read, not just one did the trick. This was one with which we had success, and he worked through it, being entertained as well as learning phonics and sounds. We skipped Step 1 software and went right to Step 2 software. It helped my son hear sounds and learn about syllables. And he had fun.
Here is one example of teaching the "sh" sound and recognizing if it is at the end of the word or the beginning: Train Example (on the right-hand side of the page, click on "English" to see the example.
Remember, a child with dyslexia takes longer to read than the other kids. My other four kids -- any of the good phonics programs worked. But we had to work longer and with more programs with my dyslexic child. In fact, I can't believe my husband ever learned to read on his own (that was 50 years ago and no one knew he had dyslexia, they just thought he was slow.)
There is also an online site with games from Earobics here: GameGoo And it is free. Just click the center button that say "KIDS"
Here are sources from Amazon: