Wow - I am stunned that the school has put you in this position. But since you were looking at a change anyway, sometimes sooner is better than later. It's nice that you can try the private school option and see if it would be worth the move and the money. And this gives you more time to research into homeschooling, if you are going to go that route.

Anyway - I hope the transitions go smoothly after all that mess! Keep us posted!