LOVE all the books Anne suggested! Other favorites are: I Love You Through and Through; How Do I Love You?; It's Time to Sleep My Love; It's Time for Bed; Peepo, Each, Peach, Pear Plum. I could go on!
Anyways, yes read to your baby! I started reading to my 2.5 yr old as soon as he was born and he still loves reading stories and has most of them memorized! He even reads books to his baby sister!