I don't know where you live, but are there any "gifted schools" in your area? They are often listed under www.nais.org, and while they aren't cheap, they definitely can offer more challenging curriculum, and they look at ability more than age. Sometimes, even private Montessori schools are less rigid about birthday cut-off dates. If your daughter was able to enter one of those schools next year, as a "2nd grader," and then return to her existing school (if that's really where you prefer she's attends) they would probably accept her for 3rd grade.

As far as after-school/weekend enrichment programs, again, it depends on where you live. By me, there was a local teacher's training college and another gifted elementary school that offered special weekend and summer courses for gifted kids...things like "Kitchen Chemistry" and "Laser Life," etc. and he got to meet other bright children in those programs. Why don't you do a "google search" for "gifted + the name of your state" and see if anything pops up?

My daughter attends a private school. The reason why I was even making this attempt for her is that ordinarily if not for the cutoff age for my area, which is in September, she would have been in grade 1 as she is a December baby. So here she is, doing multiplication problems with ease, knowing the different functions of the cerebrum and the cerebellum in the brain, etc and being held back so to speak because of a no exception (like having a way of testing the child’s ability) rule. No sooner does the school session starts than she turns the required age for the next class, so she is not much younger than the next class. Now if her abilities were mundane or if she was an April baby like my other daughter, then I won't really bother. My thing here is even though I am not an advocate of pushing a child, my fear is just "settling" question being "at what point does the child become bored and boredom starts to have a counter productive effect on the child?" It's almost as if being a bit advanced is not a good thing. I hope I am making some sense here. It’s just that anytime I think of the issue I get almost moved to tears. Anyway, I shall keep researching on what to do. I know there might be something out there and one day I would stumble on something even if it's like an after school set up where I can sign my kids up to satisfy their yearn and quest for knowledge with kids that have the same hunger for knowledge like them. Thanks a lot for your response, at least it shows someone cared enough to read my thoughts.

While you're obviously disappointed, many achievement tests are scored based upon "grade level norms," and it's not appropriate for someone to be compared to kids who are typically a year older. Generally, Terra Nova testing takes place in non-public schools. What kind of school does your daughter attend? Unfortunately, even in public schools, there is no requirement to provide gifted education. PA is one exception.
For now, you might like to join Greatschools Gifted Group at community.greatschools.net/groups/11537