This is the first time I have included sandpaper letters and also the first time I have included more than one sound in a sound basket. I tried to use two letters I thought he already knew (a and m) and one letter I didn't think he knew (r). The other items in the basket are
I Spy books for each of the letters (which he loves), letter action cards (m is march, r is run, and a is ankle circles), and about 20 index card pictures. I am using pictures instead of objects because objects often disappear and/or get put back in their homes.
Currently I do not have Wheels sort the pictures by letter; rather we play I spy (stage 1) with them and I put them under the correct letter, though sometimes he will do it. Earlier today I asked him to put the alligator under the /a/ and he picked up the a and then set in directly on top of the alligator picture :) I suppose I should use the word "below."
He has definitely learned these three letters and is consistently successful with a three-period lesson on them.
For the third period, I flip them all over. He knocks on them and says "knock, knock." I say, "Who's there?" He flips it over. I say "letter...." and he says the letter sound. He thinks this is pretty fun. I saw this idea on a blog somewhere sometime; if it was yours, let me know, and I will link you.
As far as the "I Spy" portion of the letter sound learning process, he is very successful with stage 1. However, I am pretty sure that he just knows what the pictures are, and is not necessarily making the connection between the letter sound and the object. I say that because when I say, "I spy something in my hand (ant) that starts with /a/...." and he says "bug" every time. I told him that it's a type of bug called an ant, which starts with /a/, but he continues to insist that it's a bug that starts with /a/. I'm not really worried about this. I know he'll figure it out, but we will stick with stage one for the time being.
I plan to introduce a new sound basket every two or three or maybe four weeks depending on how busy we are and how quickly he learns them; I'm really not in a hurry. The new stuff will remain separate, but the old letters/pictures will remain accessible for review and I Spy.