I believe fee is misinformed... kindergarten starts from 2y 8mo to 3y 8m, so your daughter will be the right age to start K2 which is the second year of kindergarten. That is probably much easier to get into than K1 because some of the older kids will have left for international school reception classes.
Also, most KGs have both morning and afternoon classes and the afternoon classes are much less popular so it's easy to get into those if your daughter is not still having a nap.
It's the following year you might want to give some thought to, in choosing where to live. I think your daughter would be starting primary school in Sept 09 in most of the international schools (local schools are a year later). In Discovery Bay where I live, there are two primary schools and it's hard to get into both of them. For DBIS, you need to have been on the waiting list since birth, and for Discovery College you can apply the previous September but there are very few places versus the number of applicants.
But it's not easy to get most of the other primary schools in HK, so you need to research what each school's admission policy is. If you are only staying for a couple of years then she can always stay in KG up to K3 which would be until July 2010.
Thanks, that's my fear for Discovery Bay ... since it's hard to find an alternative because it's an island. Kowloon Tong / Hung Hom would give me more options (possibly with a school bus). My understanding is also that she could start K2 in case schools offer that. I don't expect us to stay much longer than 2-3 years, and we may try to get into Canada afterwards (applying for permanent residency while we're in HK), so I am also looking at those schools. I don't really have to look super long term. And she doesn't nap anymore either, although I would prefer a longer day like she had in the States. Thanks for the info.