Thanks for all the ideas. I don't know why I didn't think of the Rube Goldberg machines, I use them in my classes all the time.
I really like the puppet idea too - she would love trying to film it too.
As far as changing the educational environment, the other 2nd grade classroom wouldn't work for a variety of reasons, we may have the option of homeschooling, but not for another month, when DH's semester ends and one of his jobs is over.
We are going to a new school to check it out for next year this week, where there are more kids to choose from for friends and not such rigid division lines between the grades and who can interact with whom. Fingers crossed that it will look as god in person as it does by word of mouth and on paper.
Thanks again. I'm off to see whether she wants to build a puppet theater.