My experience - if she can handle kindergarten, do kindergarten and skip first grade. If she enjoys playing, kindergarten can be fun and I vote for all the fun a child can handle.
On the other hand, the kindergarten may be too academic - especially if it is a full day program - and jumping into first make make things more interesting. However.... even in first, she may be bored.
Either way, the school may need to provide some enrichment or acceleration in reading.
Be aware though that the unless this is the school's assessment that she is reading on a 5th grade level, they may not assess her as high as you do. My DS was reading some adult material at 4 - yet the school tested as only 4th grade when he was 7. His reading skills hadn't diminished, but they measure things differently. By their scale, she may be 2nd grade reading and be perfectly fine with no acceleration. You may have to do enrichment at home to maintain the zeal...
Mary
