They make pencil grips that should be helpful for her holding the pencil properly. Like these - http://www.amazon.com/The-Pencil-Grip-Ergonomic-TPG-11106/dp/B001SN8HOY/ref=pd_sbs_op_1

As for forming her letters, I can only imagine practice and paying attention are the answer there. I wouldn't push her to worry about it during classtime, but perhaps you can work on it during homework time together? Perhaps you can work on some fun projects that include calligraphy or other fun and decorative writing together? I know around 4th-5th grade my girlfriends and I would play around with our handwriting, trying to find different cute or fun or neat ways to write. I changed my handwriting many times before graduating high school.

~amy