I broke down and purchased All About Spelling Level One. Wow! Am I ever glad I did. I didn't know if dd4 would be ready for it, but I couldn't wait to see it in person. And I knew I wanted to use it as soon as she was ready for it. I am very impressed with the thought that has been put into this program. The steps they have the student take make a lot of sense to me.
I started dd4 with it the other day and we are now working on step 3. She already knew her phonograms A-Z so we were able to bypass step one. Today she was segmenting 3-sound words and learning to alphabetize. I wasn't sure how the segmenting was going to go, but she did well. I can't wait to see how this affects her learning to read.
So if you want a phonics-based spelling program or have a struggling speller, definitely check out All About Spelling. I have heard reports from many happy remedial users.