I have worked for over 10 years at a children's specialty bookstore. I have worked with many kids, both advanced readers and reluctant ones. All I can say is that programs like 'Baby Can Read' have NEVER caused any kids I have worked with to be better, happier readers.
My own son is now 10 and is a very advanced reader and started reading in kindergarten. I did not push him to read any earlier than his own development allowed. Why? Your baby is learning so many new things already- motor skills, etc. why would you push your baby to read? So you can tell people your 2 year old is a 'reader'?
I can't tell you how many times we hear that sort of thing "Little Whitney is so advanced! She read all of the Harry Potter books by the time she was 7!" Oh really? Ask yourself- if the child READ that, what did they get OUT of it? The act of physically and mentally learning to read is one thing- enjoying it is another entirely and enjoying it is what will create a lifelong reader with a high skill level.
Please do not make your baby into one of the many bright children we have worked with who see reading as a CHORE- something they just have to do because their mom makes them do it. I know that is not what you are picturing, but I am telling you I have seen this happen many times.
To really do your baby a favor- and yourself!- READ OUT LOUD- and keep doing it!! At about age 2 the launguage centers in the brain are stimulated particularly by rhyming- The Cozy Book by Mary Ann Hoberman is one we read over and over and over and my son recognized huge chunks of it and could recite them aloud with me long before he was physically reading- and loved every minute of it.
Studies have shown than just growing up in a house with reading material- books, newspapers, magazines, anything- creates an environment where kids are more likely to read for pleasure. Reading out loud to children and continuing it after they are able to read on their own is also one of the most positive things you can do to promote your child's literate future. It is the simplest thing, but it works better than anything else!