We had the same problem with LA1, but with the old readers. I tried it when our oldest DD was in 1st, and I finally had to scrap it.
Take a look at some of the things we did. They worked for us. We continued with ETC books (where ever your DD is at) and we added in The Ordinary Parent's Guide to Teaching Reading (OPGTR). It isn't very fun, but it got the job done, and there are games about every 2 weeks or so, depending on how fast you go through the material. OPGTR is extremely well rounded. It is scripted; I know some hate that, but I was so desperate after doing WP LA1 that I didn't care and made it work. I have heard of people making tiny booklets for OPGTR and having the child illustrate.
We also had the same problem with spelling. It was extremely hard for her to remember 3 -er sounding words with different spellings. For spelling we are doing All About Spelling (AAS). It took us a bit to fit her into it, as I felt she wasn't remembering the rules outside of the spelling lessons, but now she is making real progress in 3rd grade. She's not a natural speller. AAS is parent intensive, but it makes so much sense. I also noticed after beginning this program their reading skills jumped exponentially. Some use it for phonics and reading, but it would move rather slowly.
I would go to the library and get other Amelia Bedelia type books, take a look at SL's grade 2 readers and get those too. Frog and Toad, Nate the Great. There are a lot of those, and DD loved them all.
I would focus on her reading now and then possibly next year jumping into some grammar. We did do First Language Lessons too, though. I checked it out at our library and we liked it and it worked.
I hope that helps. At least it gives you a place to start looking. I was in the exact same boat as you are now, and I remember feeling like a failure and fluttering about, but then axed it. It was the best decision I made.
DD11, DD9, DD6
WP Programs used:
RTL, JOI, AW, AS1
LA-PK/K, AdvK, LA1