Hi Pitch- I read this yesterday and bookmarked it....
I'm no expert either, but am in the same-ish situation....dd is bilingual Italian-English and we are in Italy. We do OPOL at home, and as I've been a SAHM till recently, her main language has been English....although obviously her Italian has always been fairly strong as dp and all his family speak Italian and she has done 3 yrs of Italian nursery. I'd still say Italian is her minority lg though, at the moment at least.
I've been doing phonicky reading stuff with her for a while (also thanks to Moondog's suggestion, we use Headsprout) I have left Italian reading to school- dd has been in first year of primary since September and has amazed me by now being able to read fluently.....(more so than in English) I'm putting this down less to actual hardwiring reading skills between the 2 lgs and more to the plain and simple fact that Italian is a much easier lg to read, as there is only one way of pronouncing the written letters by and large, so with her basic phonic background in English, she took to the Italian like the proverbial duck to water.
Haven't seen Moondog around for a while.