You might be able to find resources at NCTE (www.ncte.org) or IRA (www.reading.org). I also have good luck with LD Online: http://www.ldonline.org/. Best of luck to your colleague.
I also should mention how my daughter with DS has taught herself sight words: she turns on the captioning feature on her DVDs. She watches a scene, pauses the frame, reads the scene, and repeats this. Over and over. Ad nauseum. Drives her little sister crazy to watch a movie this way, but it's been really effective for her learning words. She now does it on her computer rather than on the family TV. Her latest thing is to retype an entire story from one of her books, changing the names to her favorite characters--she is Emilyrella, for instance, and her Prince Charming is Woody. Buzz Lightyear is the king. I'm trying to figure out how to turn this into a transferable skill for the workplace, but I'm afraid contracts or other forms would end up looking kind of funny.
It sounds like your daughter has developed some helpful ways to learn new words. I wonder if she would be interested in exploring ReadWriteThink's Fractured Fairy Tales. I don't know if this resource is age appropriate for your daughter. However, it offers a student the opportunity to change the characters, settings, points of view, or plots of very familiar fairy tales. I thought of this resource when I read that your daughter likes to change the names in stories to match her favorite characters.
You might like searching the Thinkfinity interactives index (scroll to bottom of page) to locate some possible resources to give your daughter hands-on practice with certain skills. The index is arranged by grade level and subject area.
Thanks for sharing your daughter's experience.