I agree, E&W. It's why I didn't answer the first time...I didn't want to sound flippant (or something else icky) either.
But I can't help wondering, does it matter if she's "really" reading now or "just" not quite? Clearly she's well on her way. Why try to get her to do anything? I mean, it's not like she's late getting to it. (That's what I remind myself when I start getting impatient with DS7, at least...

)
Kids often develop in fits and starts, so she may be right on the verge of reading, but appear to be getting no closer for a long, looooooong time. Then, all of a sudden, the dam of learning bursts and giant, amazing leaps forward happen. It's not a steady, linear development.
I suspect that the less you focus on it, the more progress she'll make. Keep supporting her interests, reading to her, and all the other good things you always/already do, but don't worry about it. If she's "really" reading, you'll know soon enough. If she's not, then that's okay, too.
