ETA per your SWH:
Have you had her tested for learning disabilities? Susan B has mentioned going to be tested at Scottish Rite Hospital. I'd do that if I were you. Best of luck~~
Original:
Does she have a speech/language pathologist working with her? These professionals are not just for kids with speech problems. They are also for children who struggle with other language issues. I urge you to get her evaluted. If you aren't already, get a fun computer program that teaches the alphabet. For my younger son, long ago, I used DK's "I Want to Read" with Bear and Penguin. He absolutely loved it and it was like a lightbulb turned on in his head, when nothing else clicked. He was a little younger than your daughter, but I still think it would help. And yes, he had lots of speech and language therapy.
I also had a handwriting specialist work with him using Handwriting Without Tears (Jan Olsen) method. It helped teach him the alphabet while he was learning to write it. Between this and the computer game and the speech therapist, when it came down to it, he had very little difficulty learning to read later. I urge you to pull out all the stops on this. It's the only way she will be able to keep up with much harder first grade.
Good luck.