bayareamom, I had the same concerns as you when my daughter was starting K. She is two days before the cut-off in our area and many parents hold fall birthday kids back a year (especially boys), so there were some kids that turned 6 in K before she even turned 5. Plus she is small (5% for height). She got a bit of teasing about how short she is, but she needs to learn how to deal with it, because she will always be short (she is the same size as many of the K'ers now and she's now in second!) That has gotten better. She's also heard comments about how young she is because she is over a year younger than some of the kids in her class. And when they did an activity where they had to write about losing their first tooth, hers began with "I imagine that when I loose my first tooth..." because she is the only kid that hasn't lost a tooth. But these were all minor issues. The biggest issue we had with her in K was that her K teacher refused to give her any more challenging math or reading because her penmanship was not very good (especially compared to kids a year older than her) and she often wrote numbers/letters backwards. So she was stuck reading simple sentences in school while reading MTH books at home and had to learn 1 + 2 = 3 when she was already adding fractions. That was the hardest part in having a young K'er because for her, her ability to write was way behind her intellectual skills. But I'm glad I didn't hold her back, and now we may even have to skip her up a grade next year to find appropriate challenges.
As for the test scores, I'm not familiar with WPPSI III, but they look like high scores to me and I think you will find a lot of valuable information here. The other parents on this board have a lot of great advice and useful information.