In her conference, she did indicate that DD did not mind reviewing material which tells me that she is not challenged.
Apparently the teacher doesn't mind if DD isn't challenged, either.
Both of which scare me - lots!
I think you are getting to this about as early as a Mom of an only could be expected to...
Mid year skips are fine, especially if she is bored and 'done' with the current situation, although they can be tough socially (or wonderful socially - just hard to predict)
Homeschooling can certianly be done on weekends and evening, just have to figure in the expense of daycare while you are at work...
I would spend some time in a first and in a second grade classroom in your zone school, with as open a mind as you can... if you can find a wonderful teacher that makes many things much better.
700$ isn't a bad price for testing, but the key thing is that you want a tester who is going to give you more guidance the - gifted-yes or gifted-no. You want someone who can give individualized advice based on your daughter's LOG (Level of Giftedness)
Good luck -
Say more about 'is she happy?'
Grinity