I know our babies are a little young to be watching TV yet - but I have a DVD that I highly recommend once they're 18 months or so. Leap Frog Letter Factory. My sister recommended it to me. Her almost 2yo son knows most of his letters and sounds partly due to it. Her 3yo daughter knows all her letters and sounds. My kids really enjoyed it. My 4yo has learned lots of letter sounds just by watching it 3 times.
Just wanted to let you guys know about it - might be a good b-day or x-mas present.
Re: dvd recommendation