I know that reading the Gospel at Mass is restricted to ordained folks. But, is it permissible for a lay man or woman to lead a word and communion service and read from the Gospel? Can they lead a different sort of prayer service in a Catholic Church that includes Gospel reading?
Well, at a minimum, most people read from the Gospel on Palm Sunday and Good Friday (only about four lines which are labeled "[said by the] crowd:"). I think that counts as laity ;-).
As to "communion service", the prayers of an EM with the homebound can be considered a "communion service," and anyone is allowed to read there.