Kaboom,
You have received a lot of good advice here. I guess the first thing I would suggest if you can afford it is to get private testing done for your son's IQ and achievement. You son is asking for help and having those 2 tests will at least give you a better sense of the best way to help him (they aren't perfect, but a decent starting point). They also will likely help you advocate with the school, and you can be comfortable that the school is not monkeying with the results or failing to disclose all information. Also, the pychologist who does the testing can help you with some ideas for advocacy, and talk to your son about his feelings. Make sure you test with a pyschologist who is familiar with gifted kids!
Unfortunately, it sounds to me that your school just doesn't have any idea how to deal with a kid like your kid. This isn't unusual, but it is sad. Can you check out whether there are gifted specialists in your district, or curriculum specialists who might be able to help?
You might want to read Nation Deceived from the acceleration institute, and read some of the other posts on this board. Educating yourself makes a huge difference when you advocate with the school - you start to realize that they are just really ignorant most of the time (sometimes they are willfully hostile, but not often).
Most likely you will need to decide (people here can help) what your child needs and then formally request that. My state doesn't have GIEP's so I can't help with that, but others can. Perhaps your DS needs a full grade skip and than subject acceleration in another subject or two. He certainly needs a teacher who understands how to differentiate well (and who won't try to use him as a mini-me).
Finally, if things do not improve rapidly and depending on your personal circumstances, I agree that pulling him from school for the rest of the year might be a good idea. Let him recover from the trauma of this year, learn what he wants to learn, and have fun. Heck, if you find a psychologist who is homeschool friendly, maybe you can tell the school that he/she suggested it as a way to let your child regain emotional health. Use the time to work out proper accomodations for your child for next year.
Good luck
