I'm really not surprised at all that Bright Eyes is teaching himself to read.
He's been spelling his own name for months now. He can spell everyone's name in the family and one of his favourite jokes is to swap the letters in his brother and sisters names and laugh.
Everywhere we go, he looks for words and spells them out. He wants me to put my finger underneath the words we read together. He compares words with each other and whatever words he says he also adds what they begin with and what letters they have in them.
The other night I peered over his shoulder as I saw him point out and whisper the words "I do not like them Sam I am" as he sat reading Green Eggs and Ham. (And he's standing here reading the same words over my shoulder right now!)
(His older sister did the same thing. Actually, the first writing she ever did was at three when she wrote in black felt tip pen on the wall, "No Mum" because she was angry with me. Hee hee.)
It's nice to have children delighted about words and reading. Bright Eyes really does love stories and some of our best times together are over a book.