PYHO: 2nd Grade Blues

Up until this school year I have always thought my seven year old, Miss K was a intelligent child. At six months she starting talking, at nine months she crawled, at ten months she walked and at two years old she sang the Pledge of Allegiance.
Learning the basics for entering school came to her so easily and upon entering Kindergarten I was not nervous about her ability to learn. We had our struggles with her social behavior because she likes to talk. Other than that he classwork was average for a five year old.
First grade was another struggle with her inability to stop talking to friends but her classwork was a breeze. Her handwriting skills were above the rest of the kids in her class and she was in the highest reading level.
But this year has been a struggle. It's not just the homework that she is having difficulty with she is also having a hard time taking tests. Miss K can read a 40 page book quite well but if you ask her the point of the story. Blank stare. We have tried breaking down the story into sections and she still has a hard time with that. Reviewing the story several times still doesn't help much and when she has to answer a question about the book she looks to my husband or myself to give her the answer. She won't try.
I try not to get frustrated with her but when reading books turns her to tears it breaks my heart. I don't know how to help her. We have requested easier books to see if we can step back a little and find what works for her. We skipped doing the reading homework this evening since we spent four, yes four hours working on it last night.
We tackled math which is another subject she is currently struggling in. I'm not sure what these teachers are teaching her or if she is even listening. I have questioned the possibility of ADD to her pediatrician and he turns a blind eye. He feels it's her age that is causing her to be unable to pay attention and focus in class.
We are having a parent/teacher conference this Friday. I'm hoping together we can find the problem with Miss K and find what works for her. Maybe her way of learning is different and we have to find it. I'm hoping to find answers.