Reading the Hanzi is simply a matter of practice. As you recognize more characters, they start to snowball as you encounter new words. I use flashcardexchange.com to build up vocabulary from the Survival Phrases and Elementary lessons and have seen characters come up in other contexts and build upon that learning.
http://www.flashcardexchange.com/mycards/view/869758
http://www.flashcardexchange.com/mycards/view/877988
CC101 has a sister site, popupchinese.com There's a
wonderful tool called "Adsotrans" which allows you to enter text and get a rough translation. The dictionary there is excellent.
shanshanchua gave you a good pointer on the "how do you say --- in Chinese". I found that lesson very helpful.