suevv,
Just thought I would comment on one part of your excellent post: sometimes it helps children to see that they are making progress if we chart it for them. (I love data!) Seriously, a very bright, pattern-strong seven-year-old is certainly capable of understanding a trend-line. I would pick an easily-scored observable that happens frequently enough that it can be quantified on a daily or weekly basis. Either a behavior he is working on reducing, or one he is working on increasing. Many perceptive children need not only the unconditional love and affirmation that you provide, but some objective, external evidence that things are improving.