Ok some of that is above my head. ( simple mind ) but I can answer a couple of questions
To sight read an album select the album. Nursery classics is one whole album ( each album has 6-12 songs in it roughly) the idea is to play the songs in the album without the note names or pictures to guide you. So you would select either view 2,4 or 6 before you start. Then all you see are notes on the staff without the visual support of a teacup, door, farm or c,d,e written on them. Then you play the album one song at a time taking note of how many mistakes you make ( mistakes are counted by the program in the bottom left hand corner write them down as you go) you play each song no more than 3 times in a row or you will begin to memorise it ( which defeats the purpose!) aiming for a perfect score. To begin with you may choose to play right hand only then left hand only building up to both hands together. The AIM is for accuracy NOT speed so it doesn't matter how long it takes to play each piece.
Yes you have the order right. You play the right hand first, then memorise the right hand ( through singing and playing practice using the H for hide function) then play the left hand only until it is memorised then play both hands together.
I agree with Hellene that you should not be rushed to move on from view 1 and 3. View 1 allows children to make sense of the relay ship between the keys on the piano and the notes on the staff.