I hope to keep homeschooling and not deal with the schools anymore. Considering that, I am going to officially keep him at grade level and use whatever materials are appropriate. I will reevaluate in third grade after he takes the NUMATS test.
At least, that is my current plan after considering the advice I've gotten!

RaptorDad- I think its pretty common to need a lawyer, especially with 2e kids in public school. :P My mom has had to get a lawyer involved various times for my siblings. Often it is enough to get the lawyer to write a letter, and just the implied threat of impending litigation will light a fire under their butts.