Hey,
I'm certain that on-campus parking isn't discounted during reading week; as far as what I found in here:
http://parking.mcmaster.ca/transponder_pamphlet. pdf, the only times parking is discounted are weekends and statutory holidays.
Based on this map:
http://parking.mcmaster.ca/June25Upd... utomation.PDF, I'm assuming you're referring to Lot I behind the IAHS. This is a main campus lot, so the regular $5.00/hour up to $20.00 applies for daytime this week. After 7:30 PM until 7:30 AM, it changes to $5.00 flat rate for the entire night (but the at 7:30 AM, another $5.00 begins accumulating per hour until the max of $20.00 is reached).
And as for shuttles, I based my info from this website:
http://parking.mcmaster.ca/shuttle.htm. The shuttles certainly run during regular hours this week, only not during any weekends/holidays. I think the idea is that they try to co-ordinate shuttle down-time with parking lot discounts, because nobody's going to want to walk all the way from a West campus parking lot, and lots of the Faculty transponder holders are gone for the day anyway by those times (so more spots in the central parking lots can be opened for visitors).
Hope that helped!