I teach Year One and I do levelled reading groups Mon-Thurs. It sounds like you are trying to have every child read in small groups at the SAME time. This cannot work- certainly not in early childhood. YOU need to teach
reading STRATEGIES. I have 27 kids and 4 groups. Only one group does guided reading- with me- each day.
Now it's 4 weeks from the end of Year One 2002, the kids are good readers (phew!) so I can split my guided reading group and run 2 books while I watch and participate. This way, I keep my very highest group at only 3 children.
Other groups do: word attack, language games, computer
and another that I call a 'book box'. My 3 trusty parents run these other groups. My classroom is never big enough- brand new that it is- there is 1 corner!! (the others have either a door, a computer power point or a cupboard).
Why don't you to do a proteacher search with the key words 'guided reading'? I've done it and there's so many ideas there. Hope I've helped you.