DD1 is 5, in reception. Her teacher is lovely, and says that she is the best reader in the class and that they have problems knowing what to do with her during guided reading etc. The school reading books give DD no challenge at all, but that is fine as she enjoys reading them and they seem to be building her confidence.
Out of school she will happily read pretty much anything - she likes to read to her toddler sister as I think she likes the subjects of the picture books, Thomas comics, and being able to do the voices and so on, she will chat on facebook to family, she reads the newspaper headlines over our shoulders and asks awkward questions, etc - the only words she seems to struggle with are ones where she doesn't know the meaning. She reads with expression and can answer questions about the text. She can read in her head, which for some reason amazed her teacher - I think DD being so vague means that she surprises people sometimes :)
She does have some chapter books - horrid henry, pippi longstocking, my naughty little sister, roald dahl type things, but I don't think her stamina is up to it as she will read a couple of pages and then wander off, although she does that to a lot of things - she is a daydreamer.
So, what can I do at home with her to encourage her along? I'm thinking stamina is the thing - once she can read books, the world is her oyster 
Maybe some kind of reference skills? We've done the basic using a dictionary and encyclopedia stuff, but didn't get much further than knowing what the contects and index are for and knowing the alphabet.
I am well aware that reading isn't the be all and end all - it would be very unusual for most of the rest of the class to not get to this stage very soon - but I think that it would be lovely for her to be able to "unlock" books a bit more. We are a very bookish family, and she is like a little sponge at the moment.
NOBODY SAY "oooh, but she's five, she should be doing fun things, not reading!" Reading is fun. Learning stuff is fun. DH is out at a quiz night, I am about to have a bath and read an OU book - these are fun things. Why would I not want my children to be able to do these things? I'm hardly standing over her with a stick!